An employee at Fortune Bay’s Goldfields project in Saskatchewan. Credit: Fortune Bay
Fortune Bay (TSXV: FOR) said an updated economic study for the company’s Goldfields project in Saskatchewan shows rising gold prices have resulted in a quadrupling of the past-producing mine’s expected value. The stock soared.
At spot gold prices of $3,650 an oz., Goldfields has an after-tax net present value (NPV) of C$1.25 billion ($906 million), an after-tax internal rate of return (IRR) of 74% and a payback of less than a year, Fortune Bay said Tuesday in a statement. The base case, which rests on gold averaging $2,600, would result in an NPV of C$610 million, an IRR of 44% and a payback of 1.7 years.
A November 2022 preliminary economic assessment (PEA), which factored in average gold prices of $1,650 per oz., outlined an after-tax NPV of C$285 million, an IRR of 35% and a payback period of 1.7 years.
“The…
