"All-In" Cost of Tyhee's Mine Should Make Financing a Slam-Dunk at $2,000 Gold.
in response to
by
TYHEE GOLD CORP
(PRESS PROFILE TAB FOR FACT SHEET & UPDATES)
Message: "All-In" Cost of Tyhee's Mine Should Make Financing a Slam-Dunk at $2,000 Gold.
Dr. John Wolstencroft's analysis suggests that a gold price today of at least $2,000 per ounce is required to build a new profitable mine.
http://commoditywatch.podbean.com/2012/10/16/dr-john-wolstencroft-on-gold/?
Here are figures obtained from Tyhee that show "all-in" costs per ounce to finance its mine at $1,400 gold and at $2,000 gold.
Note that the Pretax cash flow is $326/oz or the mine will make $326/oz all in. So the reverse of that will give you Tyhee's all-in costs: $1400 - $326 = $1074/oz
|
Pre-Tax Economic Results |
|||
|
Description |
Units |
Value |
Unit Cost |
|
Production |
|
|
|
|
Ore Processed |
kt |
20,434 |
- |
|
Gold Recovered |
koz |
1,207 |
- |
|
Estimate of Cashflow |
|
|
|
|
Gold Price |
US$/oz-Au |
$1,400.00 |
- |
|
Gross Revenue |
US$000s |
1,689,522 |
- |
|
Refinery Charge |
US$000s |
(8,448) |
($7.00) |
|
Freight |
US$000s |
(86) |
($0.07) |
|
Insurance |
US$000s |
(252) |
($0.21) |
|
NSR |
US$000s |
1,680,736 |
$1,392.72 |
|
Rnicholas Lake Royalty |
US$000s |
(5,259) |
($4.36) |
|
Net Revenue |
US$000s |
1,675,477 |
$1,388.36 |
|
Operating Costs |
|
|
|
|
OP Mining |
US$000s |
362,004 |
$299.97 |
|
UG Mining |
US$000s |
113,218 |
$93.82 |
|
Rehandle |
US$000s |
16,612 |
$13.77 |
|
Processing |
US$000s |
435,291 |
$360.70 |
|
G & A |
US$000s |
89,271 |
$73.97 |
|
Total Operating Costs |
US$000s |
1,016,396 |
$842.22 |
|
LoM Cash Cost |
US$/oz-Au |
|
$853.86 |
|
Operating Profit |
US$000s |
659,080 |
$546.14 |
|
Capital Expenditure |
US$000s |
(225,040) |
- |
|
Capitalized Costs |
US$000s |
(40,198) |
- |
|
Pre-Tax Cashflow |
US$000s |
393,843 |
$326.35 |
|
NPV @5% |
US$000s |
215,724 |
- |
|
IRR |
% |
20% |
- |
So, at $2,000/oz gold, Tyhee would make $924/oz over 1,207 oz. That is a pretty good profit. Subtract the gold price from that number for Pretax all-in cost per ounce. With an NPV of $694,008 and an IRR of 41%, Tyhee is sitting pretty.
|
Pre-Tax Economic Results |
|||
|
Description |
Units |
Value |
Unit Cost |
|
Production |
|
|
|
|
Ore Processed |
kt |
20,434 |
- |
|
Gold Recovered |
koz |
1,207 |
- |
|
Estimate of Cashflow |
|
|
|
|
Gold Price |
US$/oz-Au |
$2,000.00 |
- |
|
Gross Revenue |
US$000s |
2,413,602 |
- |
|
Refinery Charge |
US$000s |
(8,448) |
($7.00) |
|
Freight |
US$000s |
(86) |
($0.07) |
|
Insurance |
US$000s |
(361) |
($0.30) |
|
NSR |
US$000s |
2,404,708 |
$1,992.63 |
|
Rnicholas Lake Royalty |
US$000s |
(7,524) |
($6.23) |
|
Net Revenue |
US$000s |
2,397,184 |
$1,986.39 |
|
Operating Costs |
|
|
|
|
OP Mining |
US$000s |
362,004 |
$299.97 |
|
UG Mining |
US$000s |
113,218 |
$93.82 |
|
Rehandle |
US$000s |
16,612 |
$13.77 |
|
Processing |
US$000s |
435,291 |
$360.70 |
|
G & A |
US$000s |
89,271 |
$73.97 |
|
Total Operating Costs |
US$000s |
1,016,396 |
$842.22 |
|
LoM Cash Cost |
US$/oz-Au |
|
$855.83 |
|
Operating Profit |
US$000s |
1,380,787 |
$1,144.17 |
|
Capital Expenditure |
US$000s |
(225,040) |
- |
|
Capitalized Costs |
US$000s |
(40,198) |
- |
|
Pre-Tax Cashflow |
US$000s |
1,115,550 |
$924.39 |
|
NPV @5% |
US$000s |
694,008 |
- |
|
IRR |
% |
41% |
- |
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Oct 18, 2012 09:07PM
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