The NPV, which is at a 5% discount rate, rises to $2.5 billion, with an IRR of 31% and payback of two years in a $2,500 per oz. spot gold price case, close to gold’s historic high $2,532 per oz. three weeks ago.
“Oko is ideally sequenced to benefit from G Mining’s regional footprint, development expertise, anticipated free cashflow from our in-production Tocantinzinho gold mine in Brazil and historically high gold prices,” president and CEO Louis-Pierre Gignac said in a release. “This exceptionally positive PEA only captures a snapshot of the potential value of Oko.”
G Mining shares gained 3.8% to C$8.20 apiece on Monday morning in Toronto, valuing the company at C$1.7 billion. Its shares traded in a 52-week range of C$1.67 and C$10.83.
Studies due
The company plans a feasibility study by next June and to submit its environmental and social impact assessment by the end of this year.
The PEA comes during a productive…
