Mutiny Gold's (ASX: MYG) potential has not been lost on the company's substantial shareholder Drake Capital Management, which has recently bought another 5 million shares for an average entry price of around $0.084.
Drake Capital now has a position of 35 million shares for a 7.5% stake.
Bankable Feasibility Study delivers impressive metrics
A Bankable Feasibility Study recently identified that Deflector could earn an estimated Net Operating Cash Flow of $342 million - and that is just the start.
The key financial outcomes of the study provide key financial parameters of Deflector and they are impressive:
- Net Operating Cash Flow after debt (project finance) and taxes of $171 million
- EBITDA of $323 million;
- Net Profit of $171 million;
- NPV at 8% of $103 million;
- Capital costs for plant construction of $66 million;
- Capital Costs for mine construction of $21 million; and
- IRR of 43%.
The study paves the way for the development of the project at an initial production rate of 55,000 gold ounces equivalent (annual range 44,600 in year one to 61,612 gold ounces equivalent).
There is a forecast low average operating cash cost of $621 per gold ounces equivalent and an initial mine life of 7 years, with a net operating cash flow of $324 million and internal rate of return of 43%, as well as a forecast net profit of $171 million and a net present value at 8% of $103 million.
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