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| | Corporate Profile: Extorre Gold Mines Ltd
Publisher: Kaiser Research Online
Author: Copyright 2010 John A Kaiser
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Extorre Gold Mines Ltd (XG-T)
| Extrorre is a March 2010 spin-off of the Argentinian properties of Exeter Resources that has as its flagship the Cerro Morro low-sulphidation epithermal gold-silver project that has an inferred resource of 1.1 million tonnes grading 10.5 grams per tonne gold and 545 grams per tonne silver (370,000 gold ounces and 19.2 million silver ounces,) where the project is continuing to be advanced towards a development decision the company hopes to be able to make during 2010. The company also holds the Don Sixto project where Exeter had established a 1.2 million gold ounce resource prior to encountering a provincial ban on the use of cyanide in mineral processing that effectively halted progress on the project. After upgrading the resource in November 2011 to 578,000 indicated gold ounces and 38 mililon indicated silver ounces, with a further 528,000 inferred gold ounces and 26 million inferred silver ounces, an April 2012 PEA reported a $737 million NPV (5%) for a 1,300 TPD open pit and underground operation using $1,320/oz Au and $26/oz Ag with initial capex of $244 million. In June 2012 the company agreed to be acquired by Yamana Gold for $3.50 in cash and 0.0467 of a Yamana share per Extorre share, a $4.26 per share price, and total $395 million acquisition, at the time of the announcement. |
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. |
| Cerro Morro |  | 100% WI | Argentina | 6-Prefeasibility |
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| Cerro Moro 43-101 Economic Study (USD except where noted otherwise) |
| PEAU | Apr 12, 2012 |
| NCL Ingenieria | Cerro Moro |
| Mining Scenario | TR | Mining Costs |
| Mining Type: | UG+OP |
| Cost Currency: | USD |
| Processing Type: |
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| Capital Cost: | $246,000,000 |
| Operating Rate: | 1,300 tpd |
| Sustaining Cost: | $149,000,000 |
| Operating Days: | 365 |
| Operating Cost: | $154.52/t |
| Strip Rate: |
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| BC Cash Cost per Unit: USD | $780/oz Au |
| Mine Life: | 9 years |
| BC Cash Cost Net By-Products: USD | ($672.13)/oz Au |
| LOM Tonnage: | 4,035,278 t |
| BC All-In Cost Net By-Prod: USD | ($206.57)/oz Au |
| Est Startup: |
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| Spot All-In Cost Net By-Prod: USD | $326/oz Au |
| Production Potential |
| Metal 1 | Metal 2 | Metal 3 | Metal 4 |
| Metal: | Au | Ag |
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| Grade: | 6.88 g/t | 391.94 g/t |
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| Recovery: | 95.0% | 93.0% |
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| Annual Output: | 94,000 oz | 5,250,000 oz |
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| LOM Output: | 848,434 oz | 47,290,058 oz |
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| Base Case Price: | $1,320/oz | $26.00/oz |
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| Spot Price: | $1,315/oz | $16.47/oz |
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| Base Case NSR: | $261.50/t | $287.67/t |
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| Spot NSR: | $260.52/t | $182.23/t |
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| Base Case Valuation |
| Reported Valuation Currency: | USD |
| Pre-Tax NPV: | $737,400,000 |
| Discount Rate: | 6% |
| After-Tax NPV: | $463,200,000 |
| Total Base Case NSR USD: | $549.17/t |
| Pre-Tax IRR: | 63% |
| Total Spot NSR USD: | $442.74/t |
| After-Tax IRR: | 47% |
| Annual Pre-Tax Cash Flow Base Case and Net CF/FDSH USD: | $187,260,260 | $1.60 | Pre-Tax Payback: |
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| Annual Pre-Tax Cash Flow Spot and Net CF/FDSH USD: | $136,762,460 | $1.13 | After-Tax Payback: | 2.0 y |
| Enterprise Value CAD : | $435,347,074 | $4.08/sh | Share Price: | $4.27 |
| Note: |
| Comparative Valuations using Life of Mine Averages |
| Discount Rate: | 0% | 5% | 10% | 15% |
| Base Case Pre-Tax NPV USD: | $1,290,342,340 | $921,274,856 | $670,084,053 | $494,375,498 |
| Base Case Pre-Tax Net NPV/Sh USD: | $12.09 | $8.63 | $6.28 | $4.63 |
| Premium BC PT NPV over EV: | $8.92 | $5.46 | $3.11 | $1.46 |
| Spot Pre-Tax NPV USD: | $835,862,140 | $579,437,372 | $405,704,023 | $284,849,854 |
| Spot Pre-Tax Net NPV/Sh: | $7.83 | $5.43 | $3.80 | $2.67 |
| Premium Spot PT NPV over EV USD: | $4.66 | $2.26 | $0.63 | ($0.50) |
| 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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| Cerro Moro 43-101 Economic Study (USD except where noted otherwise) |
| PEA | Dec 2, 2010 |
| NCL Ltda | Cerro Moro |
| Mining Scenario | TR | Mining Costs |
| Mining Type: | UG+OP |
| Cost Currency: | USD |
| Processing Type: | FLOT/gravi |
| Capital Cost: | $131,000,000 |
| Operating Rate: | 750 tpd |
| Sustaining Cost: | $32,000,000 |
| Operating Days: | 365 |
| Operating Cost: | $109.95/t |
| Strip Rate: |
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| BC Cash Cost per Unit: USD | $553/oz Au |
| Mine Life: | 8 years |
| BC Cash Cost Net By-Products: USD | ($233.48)/oz Au |
| LOM Tonnage: | 1,947,601 t |
| BC All-In Cost Net By-Prod: USD | $140/oz Au |
| Est Startup: |
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| Spot All-In Cost Net By-Prod: USD | $117/oz Au |
| Production Potential |
| Metal 1 | Metal 2 | Metal 3 | Metal 4 |
| Metal: | Au | Ag |
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| Grade: | 7.34 g/t | 380.22 g/t |
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| Recovery: | 95.0% | 90.0% |
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| Annual Output: | 54,400 oz | 2,675,000 oz |
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| LOM Output: | 436,000 oz | 21,400,000 oz |
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| Base Case Price: | $950/oz | $16.00/oz |
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| Spot Price: | $1,315/oz | $16.47/oz |
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| Base Case NSR: | $188.79/t | $156.35/t |
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| Spot NSR: | $261.33/t | $160.94/t |
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| Base Case Valuation |
| Reported Valuation Currency: | USD |
| Pre-Tax NPV: | $238,600,000 |
| Discount Rate: | 5% |
| After-Tax NPV: | $149,500,000 |
| Total Base Case NSR USD: | $345.13/t |
| Pre-Tax IRR: | 61% |
| Total Spot NSR USD: | $422.27/t |
| After-Tax IRR: | 46% |
| Annual Pre-Tax Cash Flow Base Case and Net CF/FDSH USD: | $64,381,188 | $0.57 | Pre-Tax Payback: |
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| Annual Pre-Tax Cash Flow Spot and Net CF/FDSH USD: | $85,497,158 | $0.76 | After-Tax Payback: | 1.7 y |
| Enterprise Value CAD : | $435,347,074 | $4.08/sh | Share Price: | $4.27 |
| Note: |
| Comparative Valuations using Life of Mine Averages |
| Discount Rate: | 0% | 5% | 10% | 15% |
| Base Case Pre-Tax NPV USD: | $352,049,500 | $246,910,916 | $173,753,799 | $121,695,479 |
| Base Case Pre-Tax Net NPV/Sh USD: | $3.30 | $2.31 | $1.63 | $1.14 |
| Premium BC PT NPV over EV: | $0.13 | ($0.86) | ($1.54) | ($2.03) |
| Spot Pre-Tax NPV USD: | $520,977,260 | $376,889,017 | $276,164,837 | $204,090,389 |
| Spot Pre-Tax Net NPV/Sh: | $4.88 | $3.53 | $2.59 | $1.91 |
| Premium Spot PT NPV over EV USD: | $1.71 | $0.36 | ($0.58) | ($1.26) |
| 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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