Amid our earnings coverage in recent weeks, we missed a preliminary economic assessment that was released by a small gold producer operating a mine in Tanzania. Truthfully, we only caught it just now because of the announcement of the filing of the technical report.
This PEA is a bit different than others that have been released by peers for a couple of reasons. First, the study is based on the expansion of a currently operating small scale mine, rather than a new project. Second, there’s not really an upfront capital requirement, because the project will be funded from internally generated cash flow, and thus there is no internal rate of return, or so the company says.
The PEA we are talking about here is TRX Gold’s (TSX: TRX) study on an expansion at the currently operating Buckreef Gold Mine.
Lets dive in.
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