Can Alice Queen Secure Financing to Capitalize on Horn Island’s Rising Value?
Alice Queen Limited is updating its Horn Island Gold Project scoping study following a dramatic gold price increase, while engaging GBA Capital to explore financing options.
- Gold price surge from A$2,450/oz to ~A$6,000/oz
- Update underway for 2021 Horn Island Scoping Study and Mineral Resource Estimate
- Expected substantial increase in project valuation
- GBA Capital appointed as strategic advisor for development and financing
- Updated study targeted for completion in first half of 2026
Context of the Horn Island Gold Project
Alice Queen Limited, an advanced gold and copper explorer, has announced a strategic update to its Horn Island Gold Project following a remarkable surge in gold prices. The price of gold has risen from approximately A$2,450 per ounce at the time of the 2021 Scoping Study to around A$6,000 per ounce today, representing an increase of about 150%. This dramatic shift has prompted the company to reassess the economic fundamentals of the project.
The original 2021 Scoping Study valued the project with a net present value (NPV) of A$140 million based on the lower gold price. With the current market conditions, Alice Queen anticipates a substantial uplift in the project's underlying value, which could significantly enhance shareholder returns.
Updating the Scoping Study and Mineral Resource Estimate
To capture the benefits of the gold price rally, Alice Queen has initiated an update to the 2021 Scoping Study. This revision will incorporate the latest gold price, along with refreshed assumptions regarding geology, mining, processing, infrastructure, operating costs, and capital expenditure. The company has engaged RSC to review and update the Mineral Resource Estimate (MRE), which forms the foundation for the economic assessment.
The original study outlined a project with a life of mine of 8.5 years, producing an average of 37,000 ounces of gold annually, with an internal rate of return (IRR) of 44.3% and a capital payback period of just over two years. The updated study, expected in the first half of 2026, aims to optimize these metrics in light of the new economic environment.
Strategic Financing and Partnership Approach
Alongside the technical updates, Alice Queen has appointed GBA Capital as its strategic financial advisor. GBA Capital will assist in evaluating funding options and structuring a financing package that maximizes value for the company and its shareholders. John Ciganek, Executive Director of Corporate Finance Advisory at GBA Capital, highlighted their capability to secure both debt and equity financing to support the project's development through to production.
While the company continues to explore partnering opportunities, it is also considering direct funding routes, reflecting a flexible approach to capital raising. This dual strategy underscores Alice Queen's commitment to advancing the Horn Island Gold Project efficiently and effectively.
Looking Ahead
The Horn Island Gold Project update comes at a pivotal time, with gold prices at historic highs and investor appetite for quality gold assets strong. Alice Queen’s proactive steps to revise its project economics and secure strategic financing position it well to capitalize on these favorable conditions. Market participants will be watching closely for the updated Scoping Study results and financing announcements, which will provide clearer insights into the project's future trajectory.
Bottom Line?
Alice Queen’s next moves on the Horn Island update and financing will be critical to unlocking its enhanced value.
Questions in the middle?
- How will the updated Mineral Resource Estimate affect the project's scale and grade?
- What financing structure will GBA Capital propose to balance risk and shareholder value?
- How sensitive is the project’s economics to potential gold price fluctuations going forward?