DrAir Sure you must have read the ICG.v CEO.CA piece by now? Quebec gold developer Integra shows impressive economics
Key take In the first full year of production, the company will generate its market cap (~$52 million) in pre-tax cash flows on 111,100 ounces of gold, assuming US$ 1,175 per ounce gold.
Based on Life of mine ("LOM") cash cost of C$551 per ounce and all-in sustaining costs of C$731 per ounce, $1500 gold would add another another $95 million CF if I use a cash cost of $640. That figure allows for some fixed cost savings off the AISC
Being as their new mill and mine comes with environment permits in place, they can get to production in 18mths with a total CAPEX just over $60m. They have $12 million cash now and 35m warrants priced at .30 that should get exercised for another $10.5. I've never seen an IRR that high especially at $1175 gold. Finding a good deal on the remaining CAPEX shouldn't be hard.
PEA shows their avg head grades over 8gpt and their growing resource has a cutoff at 5gpt. Jeech, most resource avg grades are under Integras cutoff. I can imagine what the sensitivity charts look like.
With a 2200tpd mill and those grades, they can push a lot of gold. This is going to be a serious project.
New mill came with a past producing mine, including a 600k high grade resource that in not included in the PEA, plus they are pushing the drills. Their mill has capacity for this added resource addition and I suspect we'll see it should POG move up and cash flow allows.
Being in in a past proven hot area of Quebec, They get the jurisdiction box checked and mgt is all star caliber.
I posted this as a no brainer about 2 weeks ago (with reasoning) when the shares were .18 (now.24) Was thinking on selling the news today, but looking back on my bad decision to sell the high grade Richmont project early for a dollar profit, I think I'll hold and that things are just getting started.
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