EXU has released a positive result for their Tampia Gold Project Feasibility Study (FS) outlining a low cost and high margin operation with All-in sustaining cost (AISC) of $998/oz for the life of mine (LOM) and AISC of $896/oz over the first two years. The capital cost of $119m (+/- 15%) includes a contingency of $10.8m. EXU envisages a 1.5Mtpa processing plant (hard rock capacity) with an initial mine life of 6 years and 534koz mined. Production will peak at 104koz in the first two years, with LOM average production of 92kozpa. The project will generate average EBITDA of $62mpa over the LOM with a pre-tax NPV8% of $125m, an IRR of 47% and a payback of 1.5 years. EXU will now move to complete the Bankable Feasibility Study by October 2018 with board approvals for finance and development options expected by December 2018. Maintain Speculative Buy and TP $0.19ps (prior $0.21ps).
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