West Wits Mining chairman Michael Quinert talked with Proactive about the updated Definitive Feasibility Study (DFS) for the Qala Shallows project, part of the Witwatersrand Basin Project (WBP) in South Africa.
The revised DFS shows a 58% increase in forecast revenue, now sitting at $2.7 billion, driven primarily by a significant rise in the gold price and a lower cut-off grade allowing for greater mineable material. Quinert explained that the gold price assumption in the study was increased from $1,850 to $2,850 per ounce—still conservative given today’s spot price of around $3,400.
“This is being done at a long-term consensus forecast of US$2,850 an ounce… so there’s still a lot of upside,” Quinert noted. He added that a higher gold price has also extended the peak production phase from nine to twelve years.
The company also reports that free cash flow is now expected to rise by $461 million, reaching $983 million under the new assumptions. While costs have increased slightly, now estimated at $1,288 per ounce, the margin has been substantially enhanced due to the higher gold price. Quinert emphasized the reliability of the updated figures, saying, “They’re all based on actual contracted numbers or most of them are now.”
Operational progress is already underway. West Wits has mobilized contractors and equipment to site, including a load-haul-dump unit, signalling a move toward full production in the near term.
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