Business
Invicta Project Feasibility Study Audit Completed
Invicta Project Feasibility Study Audit Completed
About this update from Aftermath Silver Ltd.
[{"type":"text","content":"\nInvicta Project Feasibility Study Audit Completed\n\n\n Jun. 22, 2009 (Filing Services Canada) -- Andean American Mining Corp. (AAG - TSX Venture, AQN - FWB), is pleased to announce that the audit of the Feasibility Study for the Invicta Project being conducted by the Lokhorst Group Ventures Inc. has been completed and will be filed on SEDAR within the next 45 days.Report Highlights:* The operating cost for the mine and plant is 28.92 USD/t and the capital cost is USD 65.3 million.* The sum of 5-years bulk revenue is USD 600.1 million and net profits are USD 185.3 million, with a gold base price of USD 900/oz and copper base price of USD 2.00/lb.* Net Present Value (NPV) at 11% discount rate of the 5-year free cash flow net of debt amortization amounts to USD 159 million in base case scenario.Financial Analysis:Stanford Group-Stanford Consulting Peru SRL performed a Financial Analysis and below are the highlights of their conclusions: 1. Year 1 EBITDA/Sales ratio is 72.3%, decreasing over time due to change in mineral content and decline of prices.2. Average EBITDA/Net Investment ratio is above 158% during the first year of operation.3. 5-year Average return of investment of 67.8%.4. Invicta Project's NPV remains positive at higher discount rates.5. When price levels are 20% below the base forecast the NPV for shareholders remains USD 98.90 million and the IRR of the project at 72%.6. Invicta would remain a profitable project even if the estimated net investment rises up to USD 90 million.7. For every 5% change in the operating costs of Invicta the NPV changes approximately USD 5 million.8. When the operating costs are 20% above the estimated value the NPV for shareholders is calculated as USD 137.65 million.Stanford used the following parameters as the basis for the Financial Analysis:Base Case Metal Prices----------------------------------------------| |Year 1|Year 2|Year 3|Year 4|Year 5|----------------------------------------------|Au USD/oz| 921 | 845 | 864 | 760 | 600 |----------------------------------------------|Ag USD/oz| 16 | 15.9 |14.42 |13.47 |11.53 |----------------------------------------------|Cu USD/lb| 3.28 | 3.02 | 2.41 | 2.25 | 2.05 |----------------------------------------------|Pb USD/lb| 0.81 | 0.79 | 0.65 | 0.63 | 0.52 |----------------------------------------------|Zn USD/lb| 0.94 | 1.04 | 1.05 | 0.89 ...