Lumina Gold has announced a dramatic increase in the valuation of its Cangrejos project in Ecuador, attributed to the recent surge in gold and copper prices. CEO Marshall Koval detailed the project's financial metrics, revealing a net present value (NPV) jump from $2.2 billion to approximately $4.2 billion and an internal rate of return (IRR) increase from 17.2% to 27%, based on current gold prices of $2,350 per ounce and copper at $425 per pound.
The discrepancy between the soaring prices of physical gold and the market valuation of gold equities, including Lumina Gold's shares, presents a unique investment opportunity. Despite a 400% growth in project reserves since 2017, the company's share price has not fully reflected these gains, suggesting potential for significant appreciation.
Koval also shared updates on the project's progress, including the completion of major fieldwork and ongoing metallurgical testing as part of a feasibility study expected to conclude by May 2025. The company's financial health is supported by funding through the Wheaton stream, with environmental assessments set to begin shortly.
This development underscores the potential for Lumina Gold to leverage favorable market conditions and meet the growing demand for gold and copper. For more information on Lumina Gold's projects and financials, visit https://www.luminagold.com.
