RE: Info6 Feb 2025 13:37
@ Rider:
SolGold PLC Announces Completion of New Cascabel Pre-Feasibility Study Feb 16, 2024
Announces Successful Completion of New Cascabel Pre-Feasibility Study with
Significantly Reduced Initial Capital Cost and 24% Internal Rate of Return
$5.4bn pre-tax Net Present Value (“NPV8%“) and 33% internal rate of return (“IRR”)
$3.2bn after-tax NPV8%, 24% IRR and 4-year payback period from the start of processing[1]
Average production[2] of 123ktpa of copper, 277kozpa of gold and 794kozpa of silver – 182ktpa copper equivalent (“CuEq”)[3] – with peak[4] copper production of 216ktpa (370ktpa CuEq)
Pre-production capital of $1.55bn for the initial mine development, first process plant module and infrastructure
85% of Mineral Reserves are classified as Proven in updated Mineral Reserve Estimate
Initial 28-year mine plan of 540Mt containing 3.2Mt Cu @ 0.60%, 9.4Moz Au @ 0.54 g/t and 28Moz Ag @ 1.62 g/t based on the updated Mineral Reserve Estimate[5]
The Project economics have been calculated based on the economic terms and conditions previously negotiated with the Ecuadorian Government[6]
Based on the above project's post-tax NPV alone, I estimate the fire sale value of that project to be c£400m, i.e. 2x the current mcap.
BUT
That PFS NPV was based on Copper and Gold prices substantially below the current prices so you could be looking at that project actually being worth 3-4x the current mcap:
Copper ($/lb) @ $3.85 (I expect $7 within a couple of years - currently $4.5)
Gold ($/oz) @ $1,750 (!)
Silver ($/oz) @ $22.50 (!)
This is big boy's stuff obviously.
https://solgold.com.au/solgold-plc-announces-completion-of-new-cascabel-pre-feasibility-study/
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