Midway Gold (MDW.TO, NYSEMKT:MDW) has completed the federal permitting stage and the construction works at the company’s Pan Gold Project in Nevada are finally allowed to start. The company received the Record of Decision (ROD) on the final Environmental Impact Statement (EIS) on December 20th, which was the very last step in the permitting process.
According to the feasibility study for the Pan project, the project has an after-tax Net Present Value of approximately $123M at a gold price of $1200/oz and after applying a 5% discount rate. The internal rate of return is a very respectable 32% and increases to 56% if on uses a gold price of $1550/oz.
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Disclosure: The author holds no position in Midway Gold. Please see our disclaimer for current positions.
