The report scenarios were modelled using a gold price of $1600 in 2013 and 2014 and decreasing to $1470 per ounce thereafter.
In a recent interview by GoldMoney’s Alastair McLeod and an analyst, the analyst commented that the long term price of gold of $1200 was still being used. Alastair McLeod suggested that a long term future gold price of $1200 was incredulous to believe when money printing of over a trillion $ are embedded for years to come.
However, the Secutor report produced a sensitivity analysis [page 4], using their preferred 10% discount rate. This suggested a BL NAV per share of:-
- $0.66 @ $1470 per ounce
- $0.87 @ $1600 per ounce
- $0.97 @ $1800 per ounce
- $1.08 @ $2000 per ounce
This at least gives any readers of the report the opportunity to make a sp forecast based on their own assessment of the future gold price.
Key month – June 2013
- Directors are due to produce Feasibility & Reserves.
- 16k ounces of gold produced by June 2013 and thereafter at the rate of 60k ounces per year [page 17].