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| | Corporate Profile: Volta Resources Inc
Publisher: Kaiser Research Online
Author: Copyright 2010 John A Kaiser
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Volta Resources Inc (VTR-T)
| Volta Resources, led by CEO and President Kevin Bullock, emerged from a merger of two West African gold explorers, Birim Goldfields Inc and Goldcrest Resources Ltd,in April 2008, and the resulting company has over 20 gold properties in Burkina Faso and Ghana. Volta completed a significant acquisition in September 2009 when it acquired the previously explored Kiaka project in Burkina Faso from Randgold Resources. Validating the significance of Kiaka, in March 2010 Volta received a $4 million investment from the International Finance Corp for further development of the project. In March 2010 the company received a setback when it was informed by he Environmental Protection Agency (EPA) of Ghana that no environmental permits will be renewed for the Akrobi Kakum, Brohani, Chenchu, Cluster, Krachikrom, Parabu, Kuri and Tinga prospecting licences, as well as its Kalebu reconnaissance licence, as they are considered to lie within an area of influence of the Bui dam, which is currently under construction, and the EPA considers that potential exploitation of a mineral resource may impact the structural integrity of the dam. None of these, however, represented core projects in Volta's portfolio. At the company's flagship Kiaka gold project, where measured and indicated resources of 4 million ounces are complemented by inferred resources of 950,000 gold ounces, colletively grading 1.06 g/t Au, a PFS was completed in May 2012. The study forecast annual production of 340,000 gold ounces over 10 years, initial capex of $609 million, a pretax NPV(8%) of $548 million using $1,372 Au. In October 2013 the company agreed to be acquired by B2 Gold on the basis of 0.15 B2Gold share for each Volta share held, which represents a purchase price of approximately 42 cents per Volta share and a total equity value for Volta of approximately $63-million (U.S.) based on the fully diluted in-the-money Volta shares outstanding. |
Key to Understanding IPV Charts and Spec Value Hunter Tables
| An IPV Chart is a graphical presentation of a Spec Value Hunter table that has been constructed according to the Rational Speculation Model developed by John Kaiser. The IPV Chart allows speculators to identify which projects offer poor, fair or good speculative value in both absolute and relative terms. The speculative value depends on the project stage, the project's implied value as calculated by the company's fully diluted capitalization, stock price and net project interest, and the dream target deemed appropriate for the project. A dream target is what a project would be worth in discounted cash flow terms once in production. |
| Green background indicates the dream target judged appropriate for this play by John Kaiser - otherwise unranked. |
Poor Speculative Value -   |
Fair Speculative Value -  |
Good Speculative Value -   |
| Note: narrow arrows indicate IPV is outside the fair value channel but within 25% of the fair value limits |
| Click on the company name to view the company profile, the project name to view project details. |
| Click on the project icon if its background is shaded to get the IPV Chart for that company. |
| Kiaka |  | 81% WI | Burkina Faso | 7-Permitting & Feasibility |
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| Kiaka 43-101 Economic Study (USD except where noted otherwise) |
| PFS | Apr 17, 2012 |
| Tetra Tech | Kiaka |
| Mining Scenario | TR | Mining Costs |
| Mining Type: | OP |
| Cost Currency: | USD |
| Processing Type: | SAG, CIP |
| Capital Cost: | $609,700,000 |
| Operating Rate: | 34,600 tpd |
| Sustaining Cost: | $230,500,000 |
| Operating Days: | 365 |
| Operating Cost: | $18.30/t |
| Strip Rate: | 3.0 |
| BC Cash Cost per Unit: USD | $680/oz Au |
| Mine Life: | 10 years |
| BC Cash Cost Net By-Products: USD | $680/oz Au |
| LOM Tonnage: | 126,000,000 t |
| BC All-In Cost Net By-Prod: USD | $920/oz Au |
| Est Startup: |
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| Spot All-In Cost Net By-Prod: USD | $920/oz Au |
| Production Potential |
| Metal 1 | Metal 2 | Metal 3 | Metal 4 |
| Metal: | Au |
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| Grade: | 0.96 g/t |
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| Recovery: | 89.8% |
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| Annual Output: | 340,000 oz |
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| LOM Output: | 3,493,000 oz |
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| Base Case Price: | $1,372/oz |
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| Spot Price: | $1,315/oz |
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| Base Case NSR: | $36.94/t |
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| Spot NSR: | $35.40/t |
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| Base Case Valuation |
| Reported Valuation Currency: | USD |
| Pre-Tax NPV: | $548,000,000 |
| Discount Rate: | 8% |
| After-Tax NPV: |
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| Total Base Case NSR USD: | $36.94/t |
| Pre-Tax IRR: | 23% |
| Total Spot NSR USD: | $35.40/t |
| After-Tax IRR: |
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| Annual Pre-Tax Cash Flow Base Case and Net CF/FDSH USD: | $235,369,300 | $1.11 | Pre-Tax Payback: | 4.3 y |
| Annual Pre-Tax Cash Flow Spot and Net CF/FDSH USD: | $216,006,300 | $1.01 | After-Tax Payback: |
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| Enterprise Value CAD : | $44,439,814 | $.29/sh | Share Price: | $0.33 |
| Note: |
| Comparative Valuations using Life of Mine Averages |
| Discount Rate: | 0% | 5% | 10% | 15% |
| Base Case Pre-Tax NPV USD: | $1,513,493,000 | $980,736,529 | $631,736,533 | $396,418,645 |
| Base Case Pre-Tax Net NPV/Sh USD: | $7.89 | $5.11 | $3.29 | $2.07 |
| Premium BC PT NPV over EV: | $7.67 | $4.89 | $3.07 | $1.84 |
| Spot Pre-Tax NPV USD: | $1,319,863,000 | $838,340,382 | $523,575,394 | $311,915,674 |
| Spot Pre-Tax Net NPV/Sh: | $6.88 | $4.37 | $2.73 | $1.63 |
| Premium Spot PT NPV over EV USD: | $6.66 | $4.15 | $2.51 | $1.40 |
| The comparative NPV calculations assume constant annual cash flow based on the life of mine average annual payable production and CapEx spent in year one. The operating cost includes the LOM sustaining capital. Due to details such as ore scheduling these NPV figures may differ from those of the 43-101 economic study. |
| After-Tax Valuations using Spot By-Product Prices |
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