Sunridge Gold (SGC.V) announced today they released the wrong numbers in their press release on the outcome of the feasibility study of the Asmara Project in Eritrea.
The NPV10% in the low case scenario drops to $69M from $131M (-47%), and the low copper price scenario now comes in at an NPV10% of $275M (-25%). This corresponds to a value of C$0.39/share and C$1.57/share respectively.
As one would expect several, if not dozens, of people would have proof-read the May 16th press release, this is extremely sloppy work of the company, and reduces the expected NPV of the project drastically. Although we consider Eritrea to be a decent country, we still prefer to use a 10% discount rate as opposed to the 8% discount rate.
> Click here to read the press release
Disclosure: The author holds no position in Sunridge Gold. Please see our disclaimer for current positions.
