The OreCorp share price fell with the DFS release, we put this down to negative response to the capex line. The fact is that world-class projects like Nyanzaga require sufficient investment to do the deposit justice (an under-capitalised mine is value-destructive long-term). We rebase our model with OreCorp’s updated numbers and present an essentially unchanged NPV, higher output offsetting cost escalations. An assumed increase in equity dilution negatively impacts our overall NAV, equity clearly not the optimal funding solution at the current price.
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