INTERNAL RATE OF RETURN
The Modified internal rate of return (MIRR) of the project is expected to be 64.25%.
PROJECTED INTERNAL RETURN RATE OF OVER 64%
GOALS
The key financial plan objectives for Kanungu Gold Project are:
- Ensuring profitability: Deliver a net profit for shareholders.
- Effectively and efficiently manage Cashflows deployed in operations
- Ensure an acceptable minimum return on Investment for shareholders (and providers of capital)
- Create Employment of mainly Ugandans through the forward and backward linkages.
- Contribute to the national development through the payment of Royalties.
- Improve on the Socio-economic well-being of the Katerampugu host community through social
responsibility.
CASH FLOW PROJECTIONS
- Net Present Value
The Net Present Value of the project is USD 5.458Mn (Five million Four Hundred Fifty-Eight Thousand
United states dollars).
Key assumptions on NPV assessment
➢ The overall recovery rate on gold produced has been maintained at 97.5%, with estimated
daily output of 660grams.
➢ The projected metal price has been prudentially modelled at $48 per gram (current world
average price indices for spot gold prices approximately $54.1 per gram (95% recovery)
➢ Inflation applied to the costs at 3.5% (in line with core inflation forecasts by central bank)
➢ Discount factor applied to cash flows at 9% (effective for months 13 to 29 of the project)
➢ Production revenues to commence in month 5 following completion of production set up and
resumption of full production capacity.
➢Strong cash-flows will support investment recovery, any reconnaissance activities (new sites),
increase in technology investments, any planned capital expenditures and distributions to the
directors and providers of capital.
Net Present Value
The Net Present Value of the project is USD 5.458Mn (Five million Four Hundred Fifty-Eight Thousand
United states dollars).
Key assumptions on NPV assessment
➢ The overall recovery rate on gold produced has been maintained at 97.5%, with estimated
daily output of 660grams.
➢ The projected metal price has been prudentially modelled at $48 per gram (current world
average price indices for spot gold prices approximately $54.1 per gram (95% recovery)
➢ Inflation applied to the costs at 3.5% (in line with core inflation forecasts by central bank)
➢ Discount factor applied to cash flows at 9% (effective for months 13 to 29 of the project)
➢ Production revenues to commence in month 5 following completion of production set up and
resumption of full production capacity.
EXPECTED PROJECT BREAK EVEN STAGE
The projected breakeven point for the Kanungu gold project has been assessed as 13.53 months.
Gameplay Kampala LTD is licensed to carry on the business of prospecting, exploring and mining of mineral deposits substances like gold, copper, cobalt, precious metals and other stones.
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Muyenga, Kampala - Mon – Sat: 7:00-18:00
- +256 (0) 772 473 959
- info@gameplaykla.com
Exploration License: EL00264
Mineral Dealer License: MDL20220217
Copyright © 2024 Gameplay Kampala Limited
All rights reserved.
Mineral Dealer License: MDL20220217
Copyright © 2024 Gameplay Kampala Limited
All rights reserved.