African Gold Group (AGG.V) has announced the final outcome of the feasibility study it has been completing at its Kobada gold project in Mali, Africa. The DFS was based on a total reserve estimate of approximately 511,000 ounces of gold, supporting an average production rate of approximately 50,000 ounces of gold per year.
The initial capital expenditures are expected to be just $45M and as the all-in cost per ounce of gold will be just $788, the IRR is approximately 43% whilst the NPV5% is expected to be US$86M using a gold price of $1200/oz. The project seems to be quite robust as even at a gold price of $900/oz the NPV and IRR remain positive at $22M and 17% respectively.
Go to African Gold Group’s website
The author holds a long position in African Gold Group. Please read the disclaimer
