Take good note of Table 10, below. The PEA came up with a pre-tax NPV of $2.16 Billion assuming a gold price of $1,400/oz. This equates to about $25/share. The NPV rises to $3.65 Billion at a gold price of $1,700/oz, which equates to about $42/share.
THM is presently trading at $7.96.
Why so cheap? It's because the mine is still four years from production. But as I get older, four years seems shorter and shorter. I also believe that in four years, the price of gold will be a considerable ways North of $2,500/oz.
This stock has legs.
Press Release Source: International Tower Hill Mines Ltd. On Tuesday August 23, 2011, 8:30 am EDT
International Tower Hill Announces Surface Mine Measured & Indicated Resource Expansion to 16.5 Moz Contained Gold and Robust Preliminary Economic Assessment at the Livengood Project, Alaska
VANCOUVER, BRITISH COLUMBIA--(Marketwire -08/23/11)- International Tower Hill Mines Ltd. ("ITH" or the "Company") - (TSX: ITH.TO - News)(AMEX: THM - News)(Frankfurt: IW9) announces the results of an updated preliminary economic assessment (PEA) demonstrating robust project economics for the Company's 100% owned Livengood Gold Project located near Fairbanks, Alaska. The PEA results (all USD) demonstrate project financial highlights of $3.1 billion pre-tax cash flows and a $1.2 billion Net Present Value (NPV) at a 5% discount rate at a Base Case gold price of $1,100/oz. In addition, an updated resource estimate has significantly expanded the surface mine mineralization to 16.5 million ounces gold contained in the Measured & Indicated categories and 4.1 million ounces gold contained in the Inferred resource category.
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Table 10: Base Case Gold Price Sensitivity Analysis
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Conservative Recent Spot
Gold Price Base Case Case Long-Term Case Price
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Gold Price $1,100/oz Au $900/oz Au $1,400/oz Au $1,700/oz Au
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Net Cash Flow $3.11 Billion $0.60 Billion $6.87 Billion $10.64 Billion
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NPV (5%) $1.18 Billion ($0.13 Billion) $3.14 Billion $5.10 Billion
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NPV (7.5%) $0.68 Billion ($0.33 Billion) $2.16 Billion $3.65 Billion
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Payback Period
(years) 4.9 13.9 3.2 2.3
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Operating Costs
per ounce of
gold $703 $698 $712 $721
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Total costs per
ounce of gold $875 $869 $884 $893
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Full story: http://finance.yahoo.com/news/International-Tower-Hill-iw-1888607936.html?x=0
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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