Las Lagunas Tailings Project Key Statistics & Assumptions
Resource 5.137 Mt Project Life 6.7 years Annual Mining 800,000 tonnes Annual Concentrate Feed 225,000 tonnes Gold Price US $900/ounce Gold Recovery 70.1% Average Annual Gold Production 65,000 ounces Total Gold Production 434,000 ounces Silver Price US $11.75/ounce Silver Recovery 62.3% Average Annual Silver Production 600,000 ounces Total Silver Production 3,966,000 ounces
Budgeted Operating Costs US$325/oz Au Government Royalties 3.2% Government Share of Operating Profit 14.0% Income Tax Rate 25.0% EnviroGold Group Project Distribution US$92.6m Management Fees US$11.2m Average Annual Profit US$16.2m Average Annual Cash Flow US$20.7m NPV of Investment 10% discount rate US$78.8m
So that was using gold margins of $575/oz ($900/oz sale and costs $325/oz) current margins would be $925 using a $1250 gold price and keeping in mind the silver price is alot stronger too
Im guessing the NPV will be $125m+ for this project alone which with 440m shares = 28.5c a share
Funding is the key risk here for me but on these numbers it does seem compelling
I am also not convinced about the cash costs per Oz they seem to low then again they could be after silver credits
Company should really give us an updated presentation showing an updated NPV
EVG Price at posting:
6.2¢ Sentiment: None Disclosure: Not Held
