VM is getting rerated after PEA valued at $344M
Voyageur Pharmaceuticals Announces IRR of 137% and NPV of $344 Million from Preliminary Economic Assessment for the Frances Creek Pharmaceutical Barium Project
News Release – Calgary, Alberta - TheNewswire – January 11, 2022 - Voyageur Pharmaceuticals Ltd. (“Voyageur” or the “Company”) (TSXV:VM) is pleased to announce the results of its Preliminary Economic Assessment (“PEA”) for the development of its Frances Creek pharmaceutical barium sulfate project (the “Project”), located in British Columbia, Canada. The PEA was prepared by SGS Geological Services (“SGS”). The effective date of the PEA is January 11, 2022 and a technical report relating to the PEA will be filed on SEDAR within 45 days of this news release. All values are in Canadian dollars.
The base case economics for the Project, indicates a pre-tax net present value (“NPV”) of $464 million CAD and internal rate of return (“IRR”) of 168%, while the post tax NPV is $344 million CAD with an IRR of 137% at a discount rate of 8%. The Project assumes a pre-production period of 2 years for equipment delivery and installation, and mine permitting. The payback period under the base case is 11 months.
Based on current shares issued and outstanding, the NPV after tax = $3.38 per share (fully diluted share value = $2.59 per share).
News Release – Calgary, Alberta - TheNewswire – January 11, 2022 - Voyageur Pharmaceuticals Ltd. (“Voyageur” or the “Company”) (TSXV:VM) is pleased to announce the results of its Preliminary Economic Assessment (“PEA”) for the development of its Frances Creek pharmaceutical barium sulfate project (the “Project”), located in British Columbia, Canada. The PEA was prepared by SGS Geological Services (“SGS”). The effective date of the PEA is January 11, 2022 and a technical report relating to the PEA will be filed on SEDAR within 45 days of this news release. All values are in Canadian dollars.
The base case economics for the Project, indicates a pre-tax net present value (“NPV”) of $464 million CAD and internal rate of return (“IRR”) of 168%, while the post tax NPV is $344 million CAD with an IRR of 137% at a discount rate of 8%. The Project assumes a pre-production period of 2 years for equipment delivery and installation, and mine permitting. The payback period under the base case is 11 months.
Based on current shares issued and outstanding, the NPV after tax = $3.38 per share (fully diluted share value = $2.59 per share).