WMC 0.00% 20.5¢ wiluna mining corporation limited.

Video: DFS Financial Analysis

  1. 174 Posts.


    Blackham is on track to become the only new significant gold producer (+100koz) in Australia during 2016.  The DFS confirmed the Project’s robust economics and minimal initial capital requirement for a Project of this magnitude.

    We were particularly pleased by the increase in the mine life to more than 7 years (previously 5 yrs) given there was less than 6 months between the PFS and DFS.

    We see further upside in the mine life (TSI assumption - 9yrs or 945koz) from both open pit and underground sources, as well as the potential to improve the underground mine grade further (4.9 g/t DFS vs. 5.6g/t TSI vs. 9g/t historical production).


    We have increased our valuation from $0.46 / share to $0.87 / share.  The primary drivers of our revised valuation was increasing our mine life assumption (945koz au vs. 600koz previous) and gold price (A$1,655 vs. A$1,597).  Operating costs, capital costs and metallurgical recoveries were in-line with our previous estimation.
    Last edited by The Sophisticated Investor.: 25/02/16
 
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