13:19:06 EDT Thu 25 Apr 2024
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Lundin says keep holding Kaminak

2016-02-10 21:10 ET - In the News

Brien Lundin, in the February, 2016, edition of the Gold Newsletter, says hold Kaminak Gold Corp., recently 84 cents. Mr. Lundin first said buy in January, 2010, at 59 cents. He then said take some profits -- perhaps sell half -- in July, 2010, at $1.54. Assuming a $1,000 investment for the buy, selling half at $1.54 would have yielded a profit of $757. Mr. Lundin said buy seven more times between August, 2010, and March, 2014, at prices ranging from 85 cents to $4.22. Assuming a $1,000 investment for each of the seven new buys, and taking into account the $500 investment left after the half sale, the $7,500 position is now worth $4,302. Kaminak has released a feasibility study for its Coffee project, positing a 10-year mine life with total production of 1,862,000 ounces of gold. Assuming a gold price of $1,150 (U.S.) per ounce, the company estimates an aftertax net present value of $455-million and an aftertax internal rate of return of 37 per cent. Initial capex is projected at $317-million, life-of-mine capital cost at $478-million and all-in sustaining costs at $550 (U.S.) per ounce. Hold for now.

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