Spanish Mountain has updated its project PPEA to take advantage of higher early cash flows. Credit: Spanish Mountain Gold
Spanish Mountain Gold’s (TSXV: SPA) rescoped preliminary economic assessment (PEA) for its eponymous project in British Columbia’s Cariboo region boosts early cash flows but doubles upfront costs.
Based on a 5% discount rate and a $2,450 per oz. gold price, the Spanish Mountain project now has an after-tax net present value (NPV) of C$1.03 billion ($756.5 million) and an internal rate of return (IRR) of 18.2%, according to a statement issued late Thursday.
At the spot gold price of $3,300 per oz., the NPV increases to C$2.32 billion with an IRR of 32% and payback of two years. That compares with the 2021 prefeasibility study that pegged the after-tax NPV at C$655 million, the IRR at 22% and capex at C$607 million.
The Vancouver-based company estimates it now needs about C$1.25…
