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Theta Gold Mines Limited (ASX:TGM) Half-Year Accounts at 31 December 2022
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 Theta Gold Mines Limited's (ASX:TGM) (FRA:3LM) (OTCMKTS:TGMGF) Feasibility Study (FS) for the TGME Project was delivered on 27 July 2022, confirming Theta Gold's potential to be a significant near-term, high-margin, low-cost gold producer with opportunities for future growth. Based on the FS results, the Project will provide robust financial returns from a long-life large underground mining operation for a modest capital investment given the scale of operations envisaged.
The Project Life of Mine 'LOM' will initially comprise a 12.9-year mining operation starting in Q2, 2023 and delivering LOM production of 1.24 Moz of contained gold. The estimated peak development Capital Expenditure ("Capex") is US$77 million, (A$103 million), with the Project forecast to generate a pre-tax NPV10% of US$324 million, (A$432 million) and pre-tax internal Rate of Return (IRR) of 65% at a forecast average gold price of US$1,642, (A$2,189) per ounce. Based on these metrics, the Project has a projected capital payback period of 31 months.
The FS paves the way for a Final Investment Decision ('FID') by the Theta Gold Board in respect to funding negotiations and on-going discussions with financiers with respect to full/partial debt and equity funding options. Theta Gold has appointed a debt funding advisor to manage this important process and will provide updates in due course.
Feasibility Highlights:
- TGME Feasibility Study delivers 1.24Moz contained gold production, underpinning an initial 12.9-year mine life.
- Strong financial return based on LOM plan (at average gold price of US$1,642, (A$2,189) /oz) with first production targeted for Q2, 20243 including:
o Undiscounted free cash flows of US$508m, (A$678m), pre-tax US$717m, (A$956m);
o NPV (at a 10% discount rate) of US$219m, (A$292m), pre-tax US$324m, (A$432m);
o Capital payback period of 31 months;
o Pre-tax IRR of 65%; and
o Peak production over 100,000 oz Gold.
- All-in-sustaining Cost (AISC) of US$834/oz (A$1,112/oz) over LOM sits on the bottom quartile of South Africa and Australian gold producers;
- Peak Capital requirement is US$77m, (A$103m), total capital requirements US$174m, (A$232m);and
- Front-End Engineering Design (FEED) of the TGME gold plant completed, forming an important input towards the finalisation of the FS of the TGME underground project.
*To view the full Half Year Report, please visit:
https://abnnewswire.net/lnk/YW690KOH
Bill Guy, Chairman
Theta Gold Mines Limited
T: + 61 2 8046 7584
E: billg@thetagoldmines.com
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