Preliminary economic assessment · 2013
Reported base-case project economics for the 2013 PEA of the La Joya MMT Starter Pit.
Shown for project history. Excluded from current project NPV, company comparisons and the NPV simulator.
Historical figures and assumptions
- Post-tax NPV — base case (5% discount rate)
- 92,563 US$’000
- Post-tax IRR — base case
- 22 %
- Pre-tax NPV — base case (5% discount rate)
- 133,387 US$’000
- Pre-tax IRR — base case
- 30 %
- Pre-production capital cost
- 141,190 US$’000
- Sustaining capital cost
- 6,336 US$’000
- Total capital cost
- 147,526 US$’000
- Total operating costs
- 375,375 US$’000
- Total operating cost per tonne processed
- 24.25 US$/tonne processed
- Post-tax cash flow
- 147,401 US$’000
- Operating margin
- 352,606 US$’000
- Gross sales before expenses
- 743,884 US$’000
- Mine operating life
- 9 years
- Payback period
- 2.6 years
- Gold price assumption
- 1,200 US$/troy oz.
- Silver price assumption
- 22 US$/troy oz.
- Copper price assumption
- 3 US$/lb
- Inferred resource reporting cutoff — MMT and Santo Nino, effective December 16, 2012
- 30 gpt AgEq
- Inferred resource tonnes — combined MMT and Santo Nino at 30 gpt AgEq cutoff, effective December 16, 2012
- 71,204,000 tonnes
- Inferred resource contained silver — combined MMT and Santo Nino at 30 gpt AgEq cutoff, effective December 16, 2012
- 78,730,000 oz
- Inferred resource contained gold — combined MMT and Santo Nino at 30 gpt AgEq cutoff, effective December 16, 2012
- 524,000 oz
- Inferred resource contained copper — combined MMT and Santo Nino at 30 gpt AgEq cutoff, effective December 16, 2012
- 436,776,000 lb
- Inferred resource contained silver equivalent — combined MMT and Santo Nino at 30 gpt AgEq cutoff, effective December 16, 2012
- 159,749,481 oz AgEq
The analysis uses Q2 2013 US dollars, no gearing, a 30% income tax rate and a 100% equity post-tax model. Base-case prices are US$1,200/troy oz. gold, US$22/troy oz. silver and US$3/lb copper. The PEA is preliminary, includes Inferred Mineral Resources considered too speculative geologically to be categorized as mineral reserves, and has no certainty of realization. The incorporated December 16, 2012 Inferred resource totals at the 30 gpt AgEq reporting cutoff cover the combined MMT and Santo Nino deposits, not solely the MMT Starter Pit. The current issuer does not treat this earlier study and its underlying resource as current. Shown only as historical context.
Source La Joya · NI 43-101 technical report · amended 2014-03-04 (SEC filing) · Mar 4, 2014
