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Omai Gold Mines values Guyana project at $4B in new study
The preliminary economic assessment assumes a $3,600-per-ounce gold price, supports a 24% IRR and a 4.1-year payback period.
Omai Gold Mines said a new preliminary economic assessment for its Guyana gold project puts the asset’s net present value at $4 billion, discounted at 5%, according to Mining.com.
The study assumes a gold price of $3,600 per ounce and estimates initial capital costs of $1.42 billion, with the project targeting production of 6.3 million ounces of gold over an 18-year mine life. Omai also cited a 24% internal rate of return and a 4.1-year payback period for the past-producing project.
Omai shares fell about 1% to $2.96 in Toronto on Wednesday morning, giving the company a market capitalization of C$2 billion, as the update landed. Mining.com also noted that the company delivered the PEA about four months after a resource update showed the project hosts one of the country’s largest gold resources.
The company said the study reinforces the project’s scale and long-life production profile. National Bank of Canada analyst Rabi Nizami said the economics validate a larger-than-expected global scale, even as the outlook is tempered by the cost and payback timeline. Omai CEO Elaine Ellingham added that the PEA supports the potential for a large-scale operation and economic benefits for people in Guyana.
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