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Voyageur Pharmaceuticals Announces IRR of 137% and NPV of $344 Million from Preliminary Economic Assessment for the Frances Creek Pharmaceutical Barium Project
(TheNewswire) News Release – Calgary, Alberta - TheNewswire &#...
About this update from Voyageur Pharmaceuticals Ltd
[{"type":"text","content":"Voyageur Pharmaceuticals Announces IRR of 137% and NPV of $344 Million from Preliminary Economic Assessment for the Frances Creek Pharmaceutical Barium Project\n \n \n (TheNewswire)\n \n \n \n \n \n \n \n \n News Release – Calgary, Alberta -\n \n \n TheNewswire\n \n \n – January 11, 2022 -\n \n \n Voyageur Pharmaceuticals Ltd. (“\n \n \n Voyageur\n \n \n ” or the\n“\n \n \n Company\n \n \n ”) (TSXV:VM) is pleased to announce the results of its\nPreliminary Economic Assessment (“PEA”) for the development of its\nFrances Creek pharmaceutical barium sulfate project (the\n“Project”), located in British Columbia, Canada. The PEA was\nprepared by SGS Geological Services (“SGS”). The effective date of\nthe PEA is January 11, 2022 and a technical report relating to the PEA\nwill be filed on SEDAR within 45 days of this news release. All\nvalues are in Canadian dollars.\n \n \n \n \n Economics\n \n \n \n \n \n \n Initial Project horizon – 10 Years\n \n \n \n \n \n \n Total Capital Required over 3 years – $36 million\n \n \n \n \n \n \n Equipment delivery and installation period (including mine permitting)\n– 24 months\n \n \n \n \n \n \n Payback period after start of production – 11 Months\n \n \n \n \n \n \n Operating Gross Margins average 75% over the Project\n \n \n \n \n \n \n \n \n Base Case\n \n \n \n \n Pre-Tax\n \n \n \n \n After-Tax\n \n \n \n \n \n \n Net Present Value - 8% discount rate\n \n \n \n \n $464 Mn\n \n \n \n \n $344 Mn\n \n \n \n \n \n \n Total Project Cash Flow (10 year cumulative)\n \n \n \n \n $839 Mn\n \n \n \n \n $626 Mn\n \n \n \n \n \n \n The base case economics for the Project, indicates a\npre-tax net present value (“NPV”) of $464 million CAD and internal\nrate of return (“IRR”) of 168%, while the post tax NPV is $344\nmillion CAD with an IRR of 137% at a discount rate of 8%. The Project\nassumes a pre-production period of 2 years for equipment delivery and\ninstallation, and mine permitting. The payback period under the base\ncase is 11 months.\n \n \n \n \n Based on current shares issued and outstanding, the NPV\nafter tax = $3.38 per share (fully diluted share value = $2.59 per\nshare).\n \n \n \n \n Processing products include the following:\n \n \n \n \n \n \n...