NIA's #1 overall stock suggestion for 2020 Ascot Resources (TSX: AOT) announced the results of its independent feasibility study yesterday for its 100% owned Premier Gold Mine and nearby Red Mountain project, with the ore from both projects to be processed at AOT's pre-existing 2,500 tpd Premier mill. Less than one month ago on March 25, 2020, NIA sent out an AOT update explaining, "NIA anticipates that AOT's feasibility study will show an after-tax net present value (NPV) that far exceeds initial capital expenditures (CAPEX)." Based on NIA's own internal analysis, NIA publicly predicted that AOT would report an after-tax NPV using a 5% discount rate of between CAD$541-$765 million with initial CAPEX of CAD$180 million.
NIA's internal estimate was for the after-tax NPV using a 5% discount rate to be between 3-4.25X higher than initial CAPEX! It is absolutely stunning how amazingly accurate NIA was!
AOT's feasibility study shows an after-tax NPV using a 5% discount rate based on a spot gold price of $1,710 per oz of CAD$602 million! Even more impressive is that initial CAPEX will only be CAD$146.6 million, which is 18.56% less than what NIA anticipated! This means the NPV of AOT's Premier Gold Mine/Red Mountain project is 4.11X higher than initial CAPEX!
AOT's feasibility study has officially upgraded 1,170,000 oz of gold to proven & probable reserves! AOT does NOT need to undergo an environmental assessment and can simply amend existing permits to bring the mine back into production. The mine will produce an average of 132,375 oz of gold per year over 8 years for 1,059,000 oz of total gold production! AOT will be able to significantly increase its mine life and NPV by converting its current 1,249,300 oz of high-grade inferred gold resources to the indicated category. 53% of AOT's inferred gold resources are within 100m of existing or planned underground development!
AOT closed yesterday at $0.82 per share for a gain of 60.78% since NIA announced AOT as its #1 overall stock suggestion for 2020 on October 31st at $0.51 per share! During this time period, AOT has gained 6.18X more than VanEck Vectors Gold Miners ETF (GDX), which has only gained by 9.84%! AOT has also gained 56.80X more than the NASDAQ Composite, which has only gained by 1.07%! The S&P 500 during this time period has declined by 8.65%! VanEck Vectors Junior Gold Miners ETF (GDXJ) during this time period has declined by 2.12%!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. This message is meant for informational and educational purposes only and does not provide investment advice.