Fredonia Mining (TSXV: FRED) has released a maiden PEA for its El Dorado gold project in Argentina, outlining a US$1.494 billion after-tax NPV, a 65% IRR, and a 1.9-year payback on just US$346 million of initial capital. Yet the company itself carries an enterprise value of roughly US$36 million.
In this video, we break down the economics behind El Dorado, the low-grade heap leach model, the unusually low capital intensity, the assumptions that deserve more scrutiny, and why Fredonia trades at such a massive discount to other gold developers.
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