Papillon leaps most in 2 years on pre-feasibility study

Papillon Resources has soared the most in over two years after releasing a pre-feasability study that confirms the robust economics of its Fekola Project.

Papillon Resources has soared the most in over two years after releasing a pre-feasability study that confirms the robust economics of its Fekola Project.

The West-African gold miner jumped by 17.1% to 68.5 cents at 1401 AEST following its announcement to the Australian Stock Exchange that the project would produce 306,000 ounces of gold on average over the life of the mine.

However, Papillon is still 60% lower in the year to date amid the gold spot price's 25.2% decline to $US1252.2 an ounce.

The initial mine life is expected to be nine years with "significant potential" for extensions.

"Using our current mining schedules, Fekola will still produce average pre-tax (post royalty) operating cash flows in excess of $US 130 million per annum using a flat US$1,100 per ounce gold price," Papillon said.

InvestSMART FORUM: Come and meet the team

We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles