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Amara Mining plc (AMZ-T)
Cluff Gold is a London-based gold producer focused on Africa, where it has projects in Sierra Leone, Mali, and Ghana, and producing mines in Cote d'Ivoire and Burkina Faso. Cluff, which is listed on the AIM in London and listed on the TSX in February 2009, is led by CEO Algy Cluff and Chairman Nicholas Berry. The company's flagship is its 78% owned Kalsaka mine in Burkina Faso that has 600,000 measured and indicated gold ounces, and 150,000 inferred ounces and is expected to produce at a 60,000 ounce annual rate. Cluff's other producing mine is Angovia in Cote d'Ivoire where the company has established a 500,000 ounce gold resource in all categories, divided between oxide and sulphide ores. By mid-2009 Cluff anticipates producing at a 100,000 ounce annual rate, and has a long term goal of producing 300,000 ounces annually. In October 2013 the company chose to voluntarily delist form the TSX, citing minimal trading activity of the company's shares in Toronto. Amara continues to trade on London Stock Exchange. |
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. |
Poor Speculative Value - |
Fair Speculative Value - |
Good Speculative Value - |
Note: narrow arrows indicate IPV is outside the fair value channel but within 25% of the fair value limits |
Click on the company name to view the company profile, the project name to view project details. |
Click on the project icon if its background is shaded to get the IPV Chart for that company. |
Amara Project Valuations
Company | Project | Country | Stage | IPV $ MM | $100 | UPV $500 | $2000 | Target Metals | Deposit Style |
Key Company Projects |
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Amara Mining plc (AMZ-T) | Baomahun | | Sierra Leone | Prefeasibility |
$37 | | |
| Gold | Iron Formation |
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Peer Projects |
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Comparable Projects |
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Success Stories |
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Baomahun | | 100% WI | Sierra Leone | 6-Prefeasibility |
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Baomahun 43-101 Economic Study (USD except where noted otherwise) |
FS | Jun 28, 2013 |
| Senet Pty | Baomahun |
Mining Scenario | TR | Mining Costs |
Mining Type: | OP |
| Cost Currency: | USD |
Processing Type: | CIL |
| Capital Cost: | $253,100,000 |
Operating Rate: | 5,500 tpd |
| Sustaining Cost: | $33,100,000 |
Operating Days: | 365 |
| Operating Cost: | $36.94/t |
Strip Rate: | 8.3 |
| BC Cash Cost per Unit: USD | $753/oz Au |
Mine Life: | 12 years |
| BC Cash Cost Net By-Products: USD | $753/oz Au |
LOM Tonnage: | 23,300,000 t |
| BC All-In Cost Net By-Prod: USD | $1,006/oz Au |
Est Startup: |
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| Spot All-In Cost Net By-Prod: USD | $1,006/oz Au |
Production Potential |
| Metal 1 | Metal 2 | Metal 3 | Metal 4 |
Metal: | Au |
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Grade: | 1.62 g/t |
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Recovery: | 93.4% |
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Annual Output: | 98,460 oz |
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LOM Output: | 1,130,000 oz |
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Base Case Price: | $1,350/oz |
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Spot Price: | $1,315/oz |
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Base Case NSR: | $66.21/t |
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Spot NSR: | $64.50/t |
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Base Case Valuation |
Reported Valuation Currency: | USD |
| Pre-Tax NPV: |
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Discount Rate: | 8% |
| After-Tax NPV: | $127,000,000 |
Total Base Case NSR USD: | $66.21/t |
| Pre-Tax IRR: |
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Total Spot NSR USD: | $64.50/t |
| After-Tax IRR: | 22% |
Annual Pre-Tax Cash Flow Base Case and Net CF/FDSH USD: | $58,763,950 | $0.31 | Pre-Tax Payback: |
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Annual Pre-Tax Cash Flow Spot and Net CF/FDSH USD: | $55,322,773 | $0.30 | After-Tax Payback: | 3.0 y |
Enterprise Value CAD : | $80,919,034 | $.45/sh | Share Price: | $0.21 |
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Comparative Valuations using Life of Mine Averages |
Discount Rate: | 0% | 5% | 10% | 15% |
Base Case Pre-Tax NPV USD: | $418,967,400 | $231,706,546 | $116,822,738 | $43,900,095 |
Base Case Pre-Tax Net NPV/Sh USD: | $2.35 | $1.30 | $0.66 | $0.25 |
Premium BC PT NPV over EV: | $2.00 | $0.95 | $0.30 | ($0.11) |
Spot Pre-Tax NPV USD: | $377,673,276 | $202,658,910 | $95,507,175 | $27,679,826 |
Spot Pre-Tax Net NPV/Sh: | $2.12 | $1.14 | $0.54 | $0.16 |
Premium Spot PT NPV over EV USD: | $1.77 | $0.78 | $0.18 | ($0.20) |
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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