Geopacific Resources Reports AU$1.78 Billion Pre-Tax NPV for Papua New Guinea Project; Shares Up 4%
Geopacific Resources (ASX:GPR) said its definitive feasibility study (DFS) for its 2-million-ounce Woodlark Gold Project in Papua New Guinea has returned a pre-tax net present value (NPV) of AU$1.78 billion, according to a Wednesday Australian bourse filing.The company reported a post-tax NPV of AU$1.3 billion at a gold price of AU$5,500 per ounce.The company said the pre-tax internal rate of return (IRR) is about 59% and post-tax IRR is nearly 51%, with a post-tax payback period of about 18 months from first production, undiscounted life-of-mine revenue of AU$6.1 billion, and post-tax net cashflow of AU$2.5 billion.Life-of-mine all-in sustaining costs are AU$1,966 per ounce, with total pre-production capital of AU$534.6 million, including a contingency allowance of AU$56.9 million and AU$39.8 million of mining pre-strip, the filing added.Based on the DFS results, the company will now engage with financing partners and assess a range of funding solutions, it added.The company's shares rose past 4% in recent Wednesday trade.
