Take physic, pomp

Mining PRs and the Ottotrans™, Part 107

It’s time for another attempt at translating the balderdash and nonsense uttered in mining NRs, with this edition zooming in on Executive Chair’s Bebek’s comments regarding the Auryn Resources (AUG.v) for Homestake Ridge, out this morning.

This is what he said:

“This is an early look into the Homestake Ridge high-grade gold
project’s current value, which demonstrates a highly profitable deposit
with a low capex in an established mining jurisdiction, and importantly,
it is open for considerable expansion.

“We took a conservative approach in our study to see the project’s
resilience at $1,350 gold, which generated a 23.6% IRR, however, at
$1,620 gold the project generates an IRR of 32% and an NPV of over
US$173 million.

“The Homestake Ridge gold project is a valuable part of our
portfolio, which also includes multiple tier-one exploration
opportunities, such as Sombrero and Curibaya in southern Peru and
Committee Bay in northern Canada. We are very much looking forward to
advancing our portfolio as we continue to see improving metal prices.”

And this is what it means:

“Yes, it’s shit. We know it, too.”

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