New Age Metals Inc. (“NAM”, “company”) completed a Preliminary Economic Assessment (PEA) on its 100% owned River Valley PGM project in Sudbury, Ontario.
The study showed an After Tax – Net Present Value (“AT-NPV”) at 5% of $139 million, with an After Tax – Internal Rate of Return (“AT-IRR”) of 10%, based on US$1,200/oz palladium (“Pd”). NAM’s current enterprise value of $3 million is only 2% of the AT-NPV.
The project has an AT-NPV at 5% of $347 million, and an AT-IRR of 16% using US$1,510/oz Pd, which is more reflective of current prices.
The initial CAPEX was estimated at $496 million, and the average operating cash cost was estimated at US$709/oz ($972/oz).
NAM is planning a 5,000 m drill program (subject to financing) to potentially expand the known measured and indicated resource estimate of 87 Moz PdEq (0.90 gpt), and an inferred resource of 1.06 Moz PdEq (0.63 gpt) on the project.
The U.S. imported 33% of its palladium consumption, and 73% of its platinum consumption in 2018 (Source: USGS), demonstrating the importance of PGM projects in North America.
The company recently commenced a field work program on its never-drilled Genesis PGM project in Alaska, and is awaiting drill permits on its lithium projects in Manitoba.
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