They won't say what the capex is, but the do say that they figure 250,000 ounces per year at 168 dollar cash cost per ounce at 8.5 year mine life. If debt were 32 dollars an ounce then the total debt load would be 68 million dollars US including interest. It is probably more like 50 dollars (218 total cost per ounce) or 110,050,000 US over 8.5 years. AT 6 percent interest the discounted NPV of that is about 77 million CDN.
Let's look at a different way. For three year payback take the cash costs, take them from the total cash flow and see what they can afford to pay pack. 250,000 ounces at 168 US is 42 million per year, or 58 million CDN. This is 174 million for three years costs CDN. Cash flow over that time is 250,000 X 3 X 500 dollars per ounce or 375,000,000 CDN. This is net 201 million CDN. So they can afford to pay back 201 million.
I would say if it cost CDN 101 million dollars to build everything up there, then they are home free. I first guessed it would take 80 million, It all depends on scale.
I would do it differently. With the money they have now, they could install a small vat leach operation for about 15-20 million taking about 2000 tons per day at 1/3 of their present design capacity. Their cash costs and payback would be less, and they could expand later. Cash flows would be 38 million per year and expenses would be no more than 21 million CDN. Since they have equity this would allow them to build a larger op over time.*
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