Economics

Economic Summary (USD)
 

LOM PROJECT PRODUCTION

 

Tonnes mined and processed 1,125,548
Average head grade (g/t Au)
Mined gold (oz. Au)
Recovered gold (oz. Au)
Average recovery
Mine life
11.30
408,958
352,931
86.3%
6.16 YR
Nominal production    (tonnes per annum)
Average production   (tonnes per annum)
Average production   (oz. Au per annum)
219,000
182,802
57,320
 

CASH FLOW

 

LOM COSTS cost per tonne cost per oz. Au
Mining cost
Processing cost
Exploration cost
G&A cost
Smelting & Refining cost
86.11 M
49.33 M
1.73 M
21.94 M
0.85 M
76.50
43.83
1.53
19.49
0.75
243.98
139.78
4.89
62.16
2.40
Cash Operating Cost
Royalties & Export Taxes
159.95 M
40.23 M
142.11
35.75
453.21
114.00
Total Cash Cost 200.19 M 177.86 567.21
Revenue
Total Cash Cost
423.52 M
200.19 M
376.28
177.86
1,200.00
567.21
Cash Flow (EBITDA) 223.33 M 198.42 632.79
 

PROJECTED FINANCIAL MEASURES

 

Revenue (US$1,200 per oz. gold price)
Cash cost per oz. excluding royalties
Total cash cost per oz. including royalties
All-in sustaining cost per oz.
423.52 M
453.21
114.00
778.60
LOM capex
Initial capital investment (excluding working capital)
Peak funding
Deferred and sustaining capital
Closure Cost
74.60 M
48.60 M
55.83 M
25.10 M
0.90 M
Pre-Tax Economics
Free cash flow after cost allocation
Internal rate of return (IRR)
Project NPV (discounted at 5.0%)
Payback period
 

148.73 M
67.1 %
116.99 M
1.50 YR

After-Tax Economics
Free cash flow after cost allocation
Internal rate of return (IRR)
Project NPV (discounted at 5.0%)
Payback period
 

112.54 M
52.3%
86.54 M
1.50 YR

The Company wishes to clarify that a production decision has not been based on a feasibility study of mineral reserves demonstrating economic and technical viability, which increases uncertainty and the technical and economic risks of failure associated with the development of the project. These risks, among others, include more detailed technical and economic analysis of resources or reserves in a feasibility study or various specialized studies. For more information refer to the technical report “Tuvatu Gold Project Preliminary Economic Analysis” dated June 2015.