Dundee Precious Metals Unveils Lucrative Preliminary Economic Assessment for Čoka Rakita Project in Serbia
May 2, 2024, 3:31 pm
Location: Canada, Ontario, Toronto
Employees: 1001-5000
Founded date: 1954
Total raised: $588M
Dundee Precious Metals Inc. has recently revealed the promising results of a preliminary economic assessment for its Čoka Rakita project in Serbia. The assessment showcases the potential for significant production growth with appealing all-in sustaining costs and robust economics at a $1,700 per ounce gold price assumption. The company is now moving forward with a pre-feasibility study and project permitting activities to further explore the project's potential.
The preliminary economic assessment highlights the following key points:
- Throughput capacity of 850,000 tonnes per annum
- Average annual gold production of 129,000 ounces of gold over the life of the mine
- Average cash cost of $605 per ounce of gold
- Average all-in sustaining cost of $715 per ounce of gold
- Initial capital expenditures of $381 million
- Free cash flow of $891 million over the life of the mine
- NPV (after-tax, 5% discount) of $588 million
- IRR (after tax) of 33%
The project boasts a high-margin production profile, with annual production expected to average 164,000 ounces of gold in the first five full years. The attractive returns highlight the project's appeal at a $1,700 per ounce gold price assumption, with an after-tax NPV of $588 million and an IRR of 33%.
Čoka Rakita presents an organic growth opportunity for Dundee Precious Metals, leveraging the company's mining, processing, and regional expertise. The project benefits from established infrastructure, including nearby existing roads and power lines, and is in close proximity to DPM's existing operations in Bulgaria. The company's underground mining and processing expertise further enhance the project's potential for success.
Exploration potential remains significant across four exploration licenses, with DPM continuing its scout drilling program to pursue additional skarn targets in the region. The company's proactive approach to engaging with stakeholders and commitment to responsible environmental management and social responsibility underscore its dedication to sustainable project development.
Overall, the preliminary economic assessment for the Čoka Rakita project in Serbia paints a promising picture of growth and profitability for Dundee Precious Metals. With strong economics and attractive returns, the project stands out as a valuable asset in the company's portfolio, poised for success in the gold market.
The preliminary economic assessment highlights the following key points:
- Throughput capacity of 850,000 tonnes per annum
- Average annual gold production of 129,000 ounces of gold over the life of the mine
- Average cash cost of $605 per ounce of gold
- Average all-in sustaining cost of $715 per ounce of gold
- Initial capital expenditures of $381 million
- Free cash flow of $891 million over the life of the mine
- NPV (after-tax, 5% discount) of $588 million
- IRR (after tax) of 33%
The project boasts a high-margin production profile, with annual production expected to average 164,000 ounces of gold in the first five full years. The attractive returns highlight the project's appeal at a $1,700 per ounce gold price assumption, with an after-tax NPV of $588 million and an IRR of 33%.
Čoka Rakita presents an organic growth opportunity for Dundee Precious Metals, leveraging the company's mining, processing, and regional expertise. The project benefits from established infrastructure, including nearby existing roads and power lines, and is in close proximity to DPM's existing operations in Bulgaria. The company's underground mining and processing expertise further enhance the project's potential for success.
Exploration potential remains significant across four exploration licenses, with DPM continuing its scout drilling program to pursue additional skarn targets in the region. The company's proactive approach to engaging with stakeholders and commitment to responsible environmental management and social responsibility underscore its dedication to sustainable project development.
Overall, the preliminary economic assessment for the Čoka Rakita project in Serbia paints a promising picture of growth and profitability for Dundee Precious Metals. With strong economics and attractive returns, the project stands out as a valuable asset in the company's portfolio, poised for success in the gold market.