The IRR point is the one I would underline for anyone new to this. A 40% IRR on a small deposit can still be worth less in absolute terms than a 20% IRR on a much larger one, because IRR says nothing about scale. I now check NPV alongside it, then look at the price deck behind both. If the deck is well above the current gold price, the headline economics flatter the project. The AISC note works the same way. A producer with AISC close to the gold price can look busy while barely covering the cost of moving rock, so margin per ounce matters more than headline production.
The IRR point is the one I would underline for anyone new to this. A 40% IRR on a small deposit can still be worth less in absolute terms than a 20% IRR on a much larger one, because IRR says nothing about scale. I now check NPV alongside it, then look at the price deck behind both. If the deck is well above the current gold price, the headline economics flatter the project. The AISC note works the same way. A producer with AISC close to the gold price can look busy while barely covering the cost of moving rock, so margin per ounce matters more than headline production.
Did not know the “punt” one. Thanks!
Thanks, Professor Doctor. Right on.