Guyana Goldfields target price up after updated feasibility study

Casimir Capital raised its price target on Guyana Goldfields following the release of a long-awaited feasibility study update for the Aurora project in Guyana late last week, according to a Proactive Investors article.

Casimir Capital is a natural resource investment bank specialising in metals, mining, minerals, energy, oil and gas companies.

The Tetra Tech Inc.-led study estimated the after-tax internal rate of return (IRR) at 38% and the net present value, at a 5% discount rate, at US$800 million, assuming a base-case gold price of US$1,300 per ounce.

Casimir analyst Stuart McDougall noted that the results marked a “significant improvement” over the feasibility study last February, which estimated a base-case after-tax IRR of 12.7%.

According to the article, although the NI 43-101 report is pending, around US$72 million in savings were won with the use of “fewer and smaller surface trucks”, and around US$200 million from the elimination of a vertical shaft and backfill plant, as well as about US$46 million from the removal of SAG milling and tailings thickening.

The latest report also saw a 19% decrease in life-of-mine average cash costs, reflecting a tighter mine site, a 49% reduction in the stripping ratio, and a 49% decline in underground unit costs.

More in Local News

Comments

About these comments

The comments section is intended to provide a forum for reasoned and reasonable debate on the newspaper's content and is an extension of the newspaper and what it has become well known for over its history: accuracy, balance and fairness. We reserve the right to edit or delete comments which contain attacks on other users, slander, coarse language and profanity, and gratuitous and incendiary references to race and ethnicity.

Get the day's headlines from SN in your inbox every morning:

Most Read This Week

  1. Maxton Lawrie

    Essequibo rice farmer killed by sister in apparent act of self defence

  2. Tyrell Pershad

    Stewartville woman seeks answers after finding son dead at home

  3. Gailann Chacon

    Excavator operator killed, friend injured

  4. Alvin Reid

    ‘Satan’ charged with murdering Two Sisters girl

  5. The wreckage of the bus after the accident

    Several injured after minibus topples during race on Regent St

  6. Kitty man shot dead in car by nervy householder

  7. Another view of the bus

    Man dies after ‘racing’ crash on Regent St

  8. 14-year-old held with cocaine in suitcase handles


Recommended For You