Good question, I'm glad you asked :)
So, this is quite a bit more challenging to put a number on compared to the Westgold update I just published. Because, there isn't as much track record to go on and the multi-year guidance isn't there.
Personally, I am expecting them to fully utilise their rather vast processing capacity of 20Mtpa. So, just based on the current ore reserve statement, I would expect that 15.5Mtpa would be a mix of Main Dome underground, Telfer Open Pit, and lower grade stockpiles. Hard to say in what proportion, but I am putting that at a combined grade of 0.9gpt. At some point in the future, the planned underground ore crusher and ore transport system should reach the planned 4.2 to 4.5Mtpa level - I used 4.5Mtpa in my calculation. The grade I used was 2.6gpt.
That implies 13,950,000 grams from Main Dome etc and 11,700,000 from Haverion. This will be reduced by processing losses of about 15% to 21,802,500 grams Au or 700,977 ounces of gold. That is quite a significant number. If we value gold at a very conservative AUD5000/oz and current All in Sustaining Cost per ounce of AUD1849/oz that would imply a fair valuation (at some point in the furture) of between 2.5 times higher at low valuations and 3.7 times higher.
So, simple story; I expect Greatland to be worth around three times as much within 5 years. That is without further increases in the gold or copper price. It is also without acquisitions, ANTIPA seems to be a potential future take-over target as they have some impressive intercepts and have large exploration tenements adjacent to the Telfer processing plant.
So, this is quite a bit more challenging to put a number on compared to the Westgold update I just published. Because, there isn't as much track record to go on and the multi-year guidance isn't there.
Personally, I am expecting them to fully utilise their rather vast processing capacity of 20Mtpa. So, just based on the current ore reserve statement, I would expect that 15.5Mtpa would be a mix of Main Dome underground, Telfer Open Pit, and lower grade stockpiles. Hard to say in what proportion, but I am putting that at a combined grade of 0.9gpt. At some point in the future, the planned underground ore crusher and ore transport system should reach the planned 4.2 to 4.5Mtpa level - I used 4.5Mtpa in my calculation. The grade I used was 2.6gpt.
That implies 13,950,000 grams from Main Dome etc and 11,700,000 from Haverion. This will be reduced by processing losses of about 15% to 21,802,500 grams Au or 700,977 ounces of gold. That is quite a significant number. If we value gold at a very conservative AUD5000/oz and current All in Sustaining Cost per ounce of AUD1849/oz that would imply a fair valuation (at some point in the furture) of between 2.5 times higher at low valuations and 3.7 times higher.
So, simple story; I expect Greatland to be worth around three times as much within 5 years. That is without further increases in the gold or copper price. It is also without acquisitions, ANTIPA seems to be a potential future take-over target as they have some impressive intercepts and have large exploration tenements adjacent to the Telfer processing plant.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.