Midday Monday, Troilus’ stock was down nearly 11% on the TSE
According to Justin Reid, Troilus’ CEO, the royalty buy back is “a highly accretive transaction to Troilus shareholders,” based on the modelling and economics outlined in the preliminary economic assessment (PEA) for the namesake asset, released in September.
The PEA outlined a 22-year, 35,000 tonnes per day open pit and underground mine, producing an average of 246,000 gold oz. in the first 14 years. With all-in sustaining costs estimated at $1,051 per gold oz. and an initial capital outlay of $333 million, the after-tax net present value estimate for the project came in at $576 million, at a 5% discount rate, with a 22.9% internal rate of return.
Midday Monday, Troilus’ stock was down nearly 11% on the TSE. The company has a C$126 million market capitalization.
(This article first appeared in the Canadian Mining Journal)
