Edgewater Exploration – Feature Update
Edgewater – Positive PEA will lead to significant gains for investors.
I wanted to publish a feature update on Edgewater Exploration off the back of their newly released PEA study. The PEA is more than positive, it is fantastic.
Below are the details of EDW’s new PEA:
Base Case Highlights
| | Average Annual Gold Production | 102,000/oz |
| | Average Annual Net Revenue (US$) | 60.0 Million |
| | Life of mine Net Present Value (NPV)(US$)(5%) | 206 Million |
| | Pre-Tax Internal Rate of Return (IRR) | 24% |
| | Pre-Tax Payback (years) | 3.4 |
| | Initial Open pit and underground Capital Cost (US$) | 135 Million |
| | Average Annual Cost (US$/oz) | 713 |
| | Combined open pit and underground operation | 9.9 year mine life |
I would like to note this is the base case scenario and with today’s gold price the leverage is significant.
EDW is grossly undervalued based of Spain alone and is being given ZERO value for their project in Ghana.
I was able to find a fantastic comparable based upon the recent acquisition of Auryx Gold – which was recently acquired by B2 Gold for $160M!
COMPARISON ANALYSIS
Edgewater Exploration Auryx Gold
Corcoesto Otjikoto*
Gold Project Gold Project
NW, Spain Compared to Namibia
Base Case $1300/oz *92% ownership
Annual Average Production 102,000 100,000
Operating Cash Cost $US/oz US$713/oz US$725/oz
Initial Capital Cost US$135 million* $110 million*
Mill Feed Grade 1.70g/t Gold 1.52g/t Gold
Payback 3.4 years 4.9 years
Basic Market Cap. $40 Million $142 Million
Fully Diluted Market Cap/oz $39 $97
Fully Diluted EV/oz $17 $72
Stay tuned for more updates on Edgewater and other Feature Updates at www.juniorreport.com
Balraj Rakhra
Editor In Chief
604 773 7078 | Balraj@juniorreport.com
www.juniorreport.com
