Agoracom: Small Cap Investment - Tyhee Gold Corp. - As Gold Hits $1,300 What Might Tyhee's NPV & IRR Look Like If the PFS Is Right?

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As Gold Hits $1,300 What Might Tyhee's NPV & IRR Look Like If the PFS Is Right?

in response to

Tyhee's NPV and IRR Would More Than Double at $1,500 Gold

BAIRES2

posted on Sep 24, 2010 05:36AM

The July news release of the Preliminary Feasibility Study interpolated that when the US gold price is $1,150, Tyhee's discounted before taxes Net Present Value (NPV) would be C$ 217.7 million, and an Internal Rate of Return (IRR) would be 38.8%.

Dave Webb sent me a chart (which I was unable to post here) that allowed me to interpolate Tyhee's discounted before tax NPV and IRR at higher gold prices.

What I found using this graph, was that at US$1,300 gold (we're almost there today), Tyhee's mine as seen in its Prefeasibility Study would have a NPV of $C 300 million and an IRR of about 55%.

Compare this with a NPV of $C 71.3 million and an IRR of 16.1% at $950 gold.