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 Corporate Profile: Kaminak Gold Corporation
    Publisher: Kaiser Research Online
    Author: Copyright 2010 John A Kaiser

 

Kaminak Gold Corp (KAM-V)

RSSearchWeb SiteTreeForumSEDARQuoteIPV
Kaminak Gold Corp, led by President and CEO Eira M. Thomas and Chairman John Robins, is focused on the 100% owned Coffee gold project in the Yukon for which the junior released a feasibility study on Jan 6, 2016 which envisions a 14,000 tpd open pit heap leach operation involving 4 pits with a 10 year mine life for a resource of 46.4 million tonnes of 1.45 g/t gold. The project had a CAD CapEx of $317 million, sustaining capital of $161 million, and OpEx of $24.10/t with an all-in cost of USD $775 per oz gold. With a recovery of 86.3% the Coffee project was projected to produce 1,862,000 ounces gold. At an exchange rate of 1.282 CAD:USD and base case price of $1,150 gold the FS yielded an after-tax NPV of CAD $445 million at 5% and IRR of 37% with a 2 year payback period. The plan for 2016 was to proceed with permitting and further feasibility work plus conduct exploration on the 80% portion outside the project area at a cost of $24 million to be funded from $33 million working capital as of the end of April 2016. On May 12, 2016 Kaminak accepted a friendly takeover bid from Goldcorp on the basis of 1 Kaminak share for 0.10896 Goldcorp shares which priced the offer at $2.62 per share at a 40% premium to market which priced Kaminak at about CAD $520 million.

Key to Understanding IPV Charts and Spec Value Hunter Tables
An IPV Chart is a graphical presentation of a Spec Value Hunter table that has been constructed according to the Rational Speculation Model developed by John Kaiser. The IPV Chart allows speculators to identify which projects offer poor, fair or good speculative value in both absolute and relative terms. The speculative value depends on the project stage, the project's implied value as calculated by the company's fully diluted capitalization, stock price and net project interest, and the dream target deemed appropriate for the project. A dream target is what a project would be worth in discounted cash flow terms once in production.
Green background indicates the dream target judged appropriate for this play by John Kaiser - otherwise unranked.
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Kaminak Project Valuations
CompanyProjectCountryStageIPV $
MM

$100
UPV
$500

$2000
Target MetalsDeposit Style
Key Company Projects
Kaminak Gold Corp (KAM-V)CoffeeCanadaPermitting & Feasibility $525 GoldVein
Kaminak Gold Corp (KAM-V)CreamCanadaGrassroots $525 GoldVein
White Gold Area Plays
Cruz Cobalt Corp (CUZ-V)Yukon GoldCanadaGrassroots $20 GoldVein
Petro One Energy Corp (POP-V)Underworld Area PlayCanadaGrassroots $7 GoldSediment Hosted
Sienna Resources Inc (SIE-V)Underworld Area PlayCanadaGrassroots $7 GoldIntrusive
Golden Predator Mining Corp (GPY-V)3 AcesCanadaDiscovery Delineation $54 GoldQuartz Vein
Silver Quest Resources Ltd (SQI-V)BoulevardCanadaTarget Drilling $126 GoldQuartz Vein
Yukon Gold Projects
Atac Resources Ltd (ATC-V)Rackla RauCanadaPEA $85 Gold Silver Lead ZincStratabound
ePower Metals Inc (EPWR-V)HylandCanadaDiscovery Delineation $9 GoldSediment Hosted
Till Capital Ltd (TIL-V)Brewery CreekCanadaInfill & Metallurgy $17 GoldPorphyry
Victoria Gold Corp (VIT-V)EagleCanadaPermitting & Feasibility $208 GoldSheeted Vein
Success Stories
Comaplex Minerals Corp (CMF-T)Meliadine WestCanadaPrefeasibility $632 GoldIron Formation
Underworld Resources Inc (UW-V)White - Golden SaddleCanadaInfill & Metallurgy $138 GoldSediment Hosted
Virginia Gold Mines Inc (VIA-T)EleonoreCanadaDiscovery Delineation $762 Gold CopperShear / Hemlo-style
Coffee100% WICanada7-Permitting & Feasibility
Coffee 43-101 Economic Study (USD except where noted otherwise)
FSJan 6, 2016
JDS Energy & Mining, Angus Christie, PhDCoffee
Mining ScenarioTRMining Costs
Mining Type:OP
Cost Currency:CAD
Processing Type:Heap Leach
Capital Cost:$317,000,000
Operating Rate:14,000 tpd
Sustaining Cost:$161,000,000
Operating Days:365
Operating Cost:$24.10/t
Strip Rate:5.7
BC Cash Cost per Unit: USD$520/oz Au
Mine Life:10 years
BC Cash Cost Net By-Products: USD$520/oz Au
LOM Tonnage:46,400,000 t
BC All-In Cost Net By-Prod: USD$777/oz Au
Est Startup:

Spot All-In Cost Net By-Prod: USD$777/oz Au
Production Potential

Metal 1Metal 2Metal 3Metal 4
Metal:Au


Grade:1.45 g/t


Recovery:86.3%


Annual Output:184,000 oz


LOM Output:1,862,000 oz


Base Case Price:$1,150/oz


Spot Price:$1,315/oz


Base Case NSR:$41.41/t


Spot NSR:$47.35/t


Base Case Valuation
Reported Valuation Currency:CAD
Pre-Tax NPV:$762,000,000
Discount Rate:5%
After-Tax NPV:$455,000,000
Total Base Case NSR USD:$41.41/t
Pre-Tax IRR:50%
Total Spot NSR USD:$47.35/t
After-Tax IRR:37%
Annual Pre-Tax Cash Flow Base Case and Net CF/FDSH USD:$88,449,000$0.53Pre-Tax Payback:1.5 y
Annual Pre-Tax Cash Flow Spot and Net CF/FDSH USD:$118,818,200$0.69After-Tax Payback:2.0 y
Enterprise Value CAD :$507,514,560$2.60/shShare Price:$2.69
Note: 0
Comparative Valuations using Life of Mine Averages
Discount Rate:0%5%10%15%
Base Case Pre-Tax NPV USD:$716,345,669$525,199,702$353,167,030$236,652,030
Base Case Pre-Tax Net NPV/Sh USD:$4.04$2.35$1.81$0.90
Premium BC PT NPV over EV:$2.01$0.33($0.21)($1.12)
Spot Pre-Tax NPV USD:$1,020,037,669$748,535,809$522,808,473$369,187,672
Spot Pre-Tax Net NPV/Sh:$5.59$3.49$2.68$1.58
Premium Spot PT NPV over EV USD:$3.57$1.47$0.66($0.44)
The comparative NPV calculations assume constant annual cash flow based on the life of mine average annual payable production and CapEx spent in year one. The operating cost includes the LOM sustaining capital. Due to details such as ore scheduling these NPV figures may differ from those of the 43-101 economic study.
After-Tax Valuations using Spot By-Product Prices
Coffee 43-101 Economic Study (USD except where noted otherwise)
PEAJun 10, 2014
JDS EnergyCoffee
Mining ScenarioTRMining Costs
Mining Type:OP
Cost Currency:CAD
Processing Type:

Capital Cost:$305,000,000
Operating Rate:13,200 tpd
Sustaining Cost:$145,500,000
Operating Days:365
Operating Cost:$22.53/t
Strip Rate:4.0
BC Cash Cost per Unit: USD$505/oz Au
Mine Life:11 years
BC Cash Cost Net By-Products: USD$505/oz Au
LOM Tonnage:53,000,000 t
BC All-In Cost Net By-Prod: USD$748/oz Au
Est Startup:

Spot All-In Cost Net By-Prod: USD$748/oz Au
Production Potential

Metal 1Metal 2Metal 3Metal 4
Metal:Au


Grade:1.23 g/t


Recovery:88.0%


Annual Output:167,000 oz


LOM Output:1,859,000 oz


Base Case Price:$1,250/oz


Spot Price:$1,315/oz


Base Case NSR:$43.33/t


Spot NSR:$45.58/t


Base Case Valuation
Reported Valuation Currency:USD
Pre-Tax NPV:$522,000,000
Discount Rate:5%
After-Tax NPV:$330,000,000
Total Base Case NSR USD:$43.33/t
Pre-Tax IRR:33%
Total Spot NSR USD:$45.58/t
After-Tax IRR:26%
Annual Pre-Tax Cash Flow Base Case and Net CF/FDSH USD:$100,200,460$0.59Pre-Tax Payback:1.8 y
Annual Pre-Tax Cash Flow Spot and Net CF/FDSH USD:$111,063,810$0.64After-Tax Payback:2.0 y
Enterprise Value CAD :$507,514,560$2.60/shShare Price:$2.69
Note:
Comparative Valuations using Life of Mine Averages
Discount Rate:0%5%10%15%
Base Case Pre-Tax NPV USD:$949,775,159$676,556,121$457,965,470$312,938,545
Base Case Pre-Tax Net NPV/Sh USD:$5.22$3.14$2.35$1.30
Premium BC PT NPV over EV:$3.20$1.11$0.33($0.72)
Spot Pre-Tax NPV USD:$1,069,272,009$762,494,678$522,109,216$362,378,235
Spot Pre-Tax Net NPV/Sh:$5.83$3.58$2.68$1.56
Premium Spot PT NPV over EV USD:$3.81$1.56$0.65($0.47)
The comparative NPV calculations assume constant annual cash flow based on the life of mine average annual payable production and CapEx spent in year one. The operating cost includes the LOM sustaining capital. Due to details such as ore scheduling these NPV figures may differ from those of the 43-101 economic study.
After-Tax Valuations using Spot By-Product Prices

 
 

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