Beruflich Dokumente
Kultur Dokumente
With three more years of exploration still to come, the company currently believes La Colosa could produce between 800,000 to 1.2M oz/y Au for 20 years. A resource of 24 Moz Au represents an in situ value of US$38.4Bn at US$1,600/oz Au. Assuming that 80pc of the gold could be extracted and mines can never economically extract all the gold in the resource - that represents over US$800M in royalty payments alone to the government. Assuming a net cash cost of production of US$600/oz (please note that AGA has not given any guidance on this) and using the estimated 67.7pc effective tax burden figures faced by gold miners in Colombia for open pit operations from a study by Ernst & Young (CGL May 2012 p7), the tax take for Colombia would be in the region of US$16Bn! This includes income tax, royalties, patrimony tax, payroll taxes, duties, VAT charges and other charges. Based on an independent analysis of the government take, this [project] signifies more than US$500M a year in fiscal income during at least 20 years, said Herz. The La Colosa resource has now grown to the extent that it has become a project of national interest for Colombia and one that perhaps merits that its development should be overseen by central government. The revenue generation potential of La Colosa means that there are enormous possibilities for social and infrastructure projects in the region and country. Effectively, this project encapsulates everything Colombia hoped for when former President explorers back to the country almost a decade ago. If we remember that the government has declared mining as a motor for development, a project that, by its size, the trajectory of our company and the seriousness with which we have developed the studies, would convert into a model of this modern, responsible, committed and inclusive mining that the country wants to promote, we consider that it is a project that requires the attention of the national government as a partner in favour of sustainable development. In this sense, the main call is to be able to advance the exploration phase without obstacles or delays to be able to take the viability decisions in the future, said Herz. AGA was the first major to enter Colombia and begin exploring despite the perceived security risks in the early 2000s. AGAs first mover advantage is showing increasing prescience as the companys main projects mature. In April, an updated resource of 3.9 Moz Au was reported for the Gramalote project in Antioquia that is a JV between AGA and B2Gold Corp (TSX: BTO). AGA also reported that its Quebradona project in Antioquia, another JV with BTO, continues to show results, with potential for third discovery in country. Exploration highlights from the Uribe welcomed
Chaquiro zone in Quebradona include 580m @ 0.18g/t Au, 0.48pc Cu & 175ppm Mo in hole CHA019.
Colombia Adolescent
The La Colosa resource upgrade announcement brings the number of ounces discovered in Colombia in recent times to 76 Moz Au. Colombia is far from having a mature gold mining and exploration sector but exploration projects are maturing to the stage when production decisions are coming closer. La Colosa represents the possibility of large open-pit gold mining in Colombia. At the other end of the scale are projects such as Seafield Resources (TSXV: SFF) Miraflores in Quinchia that will have a smaller footprint and more modest capex due to their more petite size, yet also providing attractive economics. Could small be beautiful? Juniors like SFF face the transitional hurdle of switching from pure exploration to a development mode and mindset. Crucially, it has to transition its investors through these quite different concepts. Exploration is about piling up a big number of ounces at an economic grade and people tend to invest in the possibility of achieving a high number. Miraflores has a reported resource of 2 Moz Au in all resource categories. As mentioned above, a mining project can never economically recover or mine all the resources, which can lead to investor disappointment when the number of recoverable ounces is reported in a PEA (Preliminary Economic Assessment). The transition for investors is to detach themselves from the ounces in the ground number to the project economics, which requires some thinking on their part. SFF is in this position. From the 2 Moz Au at Miraflores, it reported that it can economically extract 709,000 oz Au, much less than half. At face value, this may be disappointing. However, the company says that exploiting those 709,000 oz Au will give an IRR of 50pc and payback in about two years and an overall productive life of 14 years with a 4,000 tpd operation at an average cash operating cost of US$524/oz Au during the first eight years of production. Miraflores could be an highly profitable project, albeit smaller than the headline grabbing projects like La Colosa. It also has an estimated initial capex of US$93.7M, which could be more palatable to investors than the +US$4Bn that AGA may have to invest to build La Colosa. CGL