Rupert Resources – A Dive Into The Ikkari PEA and What Comes Next
James Withall, President and CEO of Rupert Resources (TSX.V:RUP – OTCQX:RUPRF) joins us to recap the PEA on the Ikkari Deposit, in Finland, released on November 28th. We focus on the key production and financial numbers that present a highly economic deposit at a $1,650 gold price.
Here are a number of data points we discuss.
- Phased mine plan optimizing near-term cash flow: Open-pit operation at Ikkari in first 11 years, transitioning to Ikkari underground (years 10-23) and Pahtavaara concentrate (years 12 to 24).
- Robust returns and fast-track to payback: After-tax Net Present Value (“NPV”) (5% discount) of $1.6 billion with unlevered Internal Rate of Return (“IRR”) of 46% and payback after only two years, assuming a gold price of $1,650 per troy ounce (“oz”).
- Long life: 22-year life of mine (“LOM”) includes recovered gold of 4.25 million ounces with average annual production of 200,000 ounces. Open pit operation is expected to support average annual production of 220,000 ounces in years one to 11.
- High margin production profile: Expected lowest quartile all-in sustaining cost (“AISC”) of $759/oz over LOM, and $596/oz during open-pit operation. Low sensitivity to cut-off grade and low initial strip ratio.
Since a PEA is a snap shot in time we also have James outline what comes next for the Company and asset. We also discuss the permitting path now that a PEA is released.
If you have any follow up questions for James please email us at Fleck@kereport.com and Shad@kereport.com.