Good` afternoon and thanks for coming. We are just going to jump right in because we only have 15 minutes. We are also in Alaska. We're a New York Stock Exchange-listed company, part of the Russell 2000. I hear a rumor that we're going to be put on the GDXJ, so we'll have to confirm that rumor. But we are in production at Manh Choh. I'm going to talk to you about three projects: Manh Choh, which is in production. We're producing about 60,000 ounces of gold a year. Lifetime all-in sustaining costs are $1,400. So with a $3,600 gold price, we're making a lot of money. We have a model that's a little different: our direct shipping ore model.
We like high grades that can be transported to existing mills so we don't have to spend years and years permitting things and raise hundreds of millions of dollars to build tailings facilities and mills. So our other two projects fit that model, and I'll walk you through what we've got planned. Quickly on share capital structure: we have a really tight share structure, 12.7 million shares outstanding. We're generating cash, so that cash number fluctuates, but we'll end the year with about $20 million of cash in the till. We're focused on delivering into our hedge book and reducing that. I'll talk about that in a second. You can see our list of shareholders. We've got very solid shareholders. They've stuck with us, and I think they're going to make a lot of money.
This is our Manh Choh project, located not too far from the Canadian border on lands owned by the Tetlin Tribe. We developed the resource, and we partnered with Kinross because we recognized that they had an underutilized mill at Fort Knox. And so we basically spent about a little less than a gram of gold to pay for the transportation up there. And that's made all the difference because we were able to get this mine into production very quickly. The ore's just run-of-mine ore, load it in a truck, transport it up to the mill site, and process through the 50,000-ton-a-day mill at Fort Knox. We did this last year. July was our first gold pour. We ended up generating about $54 million of cash last year, and our share of production was about 35,000 ounces. That's the first half of this year.
We're in our third batch process. We batch process once a quarter for about a month period long. We're in the middle of our third batch right now, but we've already produced 35,000 ounces. We're on target to exceed our 60,000-ounce projection for the year. And again, all-in sustaining costs are a little bit higher right now because we're doing more stripping, so they'll probably be around the $1,500 range. We generate a lot of cash flow. When you look at this per share, this is definite bragging slide. The only companies that generate this much cash per share are like Royal Gold and Agnico Eagle. So we're in a top-tier group of companies in terms of our cash flow per share, which I think is an important metric for gold investors to pay attention to. Our all-in sustaining costs, lifetime mine $1,400.
As I said, this year's a lot of stripping going on this year and next, and then the all-in sustaining costs will come down. We're seeing, obviously, oil price is something we watch. We assumed a $100 a barrel oil diesel price, and we've not been anywhere close to that. So that's one of the reasons our all-in sustaining costs are lower than projected. We like this model. As I mentioned, direct shipping ore, you need three things. You need good grade. You need to be in a location that doesn't require a huge amount of infrastructure. We found the Donlin deposit 25 years ago, and it still isn't permitted, and it's still not anywhere close to getting built. So this is how you make money. You don't build mills and tailings facilities, and you just meet these criteria.
It's a good, clean sweep when you go through and look at projects. These are the things that are going to make a lot of money, regardless of what the gold price is. So our Lucky Shot mine, it fits these criteria. High grade. It's located just a two-hour drive out of Fairbanks. You can drive there in a minivan. We're about 20 miles from the railroad, so we can load our ore in boxes, put it on the railroad, haul it up to Fort Knox, and just blend it right in with the Fort Knox ore. It's very high grade. You can see we've got a very small resource outline right now, but again, we don't need to find 2 million ounces to put this thing into production.
If we find 300,000, 400,000 ounces, we can put that into a mine plan, put rocks in a box, and send them up to Fort Knox for processing. That is the plan. This was a mine that was in production between 1928 and 1942, produced 250,000 ounces of gold, 40 grams per ton. Now, they selectively mined, and they hand-cobbed the ore. You can go out on the dump there on the 500 level and pick gold off the dump, so I'm not sure how good at ore sorting they were, but we're going to mine this on basically a three-meter minimum mining width. So our grade's going to be dilutive probably down to something like 12 grams per ton. And all we need to do is get the drilling done. The underground's in place.
We've kept the mine in good shape so we can start up drilling any time. As I mentioned, this year we've been really focused on delivering into the hedge book. By the end of the year, we're going to have about 42,000 ounces left in our hedge book. That's a very manageable amount of ounces to deliver into the hedges. The hedges are a little over $2,000. We're looking at strategic options to clear that off, and then we get all of that cash flow by selling gold at $3,600 an ounce, and then we can start doing the drilling here and putting the mine plan together. Rough numbers: $25 million to do the drilling, to find a resource that we can put a mine plan around, and we're looking at something that's going to be producing about 40,000 ounces of gold a year.
I know that's not like a huge amount of ounces, but when you look at all-in sustaining costs at $1,500 an ounce, that is a hell of a lot of cash flow. And that's what we're about. Give us two years to do this, $25 million to get the drilling done, and about $25 million to put your stope development in place, and you're off to the races generating a lot more cash. Our second development stage asset is Johnson Tract. It's located, you see where it's located, south of Anchorage. It is a remote location, but it's 20 miles from the coast. So it's on land owned by Cook Inlet Region, Inc., one of Alaska's larger Alaska Native corporations. It's private land. You'll notice that it's inside of a park. Now, I'm not crazy. They already have the easements granted.
Their ownership of the land predates the park, so they have their easements to be able to mine the deposit and get it down to the coast and a large landing site. And that's basically what this map shows here. So we're in the process right now of permitting the tunnel. This is basically like a Lucky Shot repeat, but we don't have the tunnel yet, so we've got to permit the tunnel. Those are state permits issued by the Department of DNR and DEC. And I think by the end of the year, or shortly after, we'll have our permits in place. By next year, we can then mobilize equipment, get the tunnel started, get the road built, and start the process of drilling underground and defining a mineral resource to a feasibility level, put a mine plan around it. There's Camp. It's a beautiful area.
You can see why if you look at this, this would be a tough place to build a mill and a tailings facility, but the DSO model works really well here because very small footprint. The road's permitted. We're grubbing it now. We plan to build it next summer and then get underground and start our drill program the following year. The tunnel looks like this. It's a little longer than what we've done for Lucky Shot. It's about a mile-long tunnel. Lucky Shot was about two-thirds of a mile. You can see the block model here, the resource. It's a really well-established resource, but you can only drill it so deep from the surface because as the deposit's deeply dipping, the mountain goes straight up, and so your holes don't go where you want them to go.
The easiest thing to do is get underground and tackle this beast. Average widths here as an ore body is 40 meters. That's going to make for very, very simple, easy mining from an underground. We completed an initial assessment a few months ago. We used $2,200 gold. We thought that was aggressive, but you can see the NPV of this project is stellar. It is a mixed metal, so it's copper, lead, zinc, gold, silver. That's five critical metals on the U.S. critical metals list. We will see this thing permitted under the Trump administration. I'm very sure of that. The fact that we're quite a ways along in already permitting the mine. We'll be permitting the infrastructure, the access road, and the barge site later next year. You can see this is a hugely accretive project for us.
At today's gold price, you're getting up there towards $500 million NPV. So I don't think we get a lot of value for this. We're in that boring part of the Lassonde Curve for permitting, so we're in the boring part of the Lassonde Curve for this project. But I think once we get our permits and once we demonstrate that we can get the road built and get the tunnel under started, I think you'll see this value come into the stock. So our growth strategy is to grow the company from its current 60,000 ounces of production, get Lucky Shot on track 40,000, and add 100,000 ounces of annual production with Johnson Tract. Now, it's gold-equivalent ounces. Johnson Tract is about 65% gold, 75% gold, silver, and then the balance is base metals. So we'll still be a gold company for sure.
But that's a hell of a growth profile. We don't think we need to do a lot of dilutive f inancings to get here because we're generating once we take care of those hedges and we're looking at strategic options right now to do that, we're generating today's gold price well over $100 million of free cash flow. So this is a plan we can execute, not subject to a lot of permitting and not subject to a lot of delays and cost overruns. When the price of gold goes up, it feels great, but then when inflation catches up with you, marginal projects are still marginal. So I think I'm out of time. Or maybe we've got a couple of minutes for questions.
Of course, you've got time for questions. Yes.
Sure.
The front row.
Where do you plan to.
Well, for the microphone, sorry.
Hi.
Thank you for your presentation. Where do you plan to process the DSO from the Lucky Shot? Why don't you use the Kinross?
Yeah. So Kinross, I think Lucky Shot's an obvious—I mean, just put it on the rail, go up to Fairbanks. And I think it runs through the subject to doing a bit more work on metallurgy, but Lucky Shot is basically a gold quartz vein, very little sulfide. So it's very much like Fort Knox. It just doesn't have all that granite around it. So we'll just send the quartz veins. So we haven't had formal discussions. They're interested to keep Fort Knox running. If you've looked at Fort Knox's financials, pre-Manh Choh and post-Manh Choh, it's night and day. That's been a great project for them as well as us. So yeah, I think that's where it's a good home for Lucky Shot. Johnson Tract, we're evaluating two or three different options currently, and we kind of like the idea of maybe owning our own mill.
I don't want to build it, and I don't want to permit it, but I don't mind owning it. So stay tuned in this space, and that's part of these strategic discussions that we're having now. The world changes when you have $100 million of free cash flow. Any other questions?
Thanks.
Okay, well, I figured you already.