Australia's largest stock trading and investment forum Australia's #1 stock forum

GSR

Click for more information

0.00%

1.1¢ greenstone resources limited

Ann: CNJ: Mt Thirsty Cobalt Project Scoping Study, page-6

First 6 Last

Share
Profile

Follow
nosurprises

973 Posts.

25

05/10/17

10:34

Post #: 27675465
Share

Originally posted by mmoore1957 ↑

SS looks good at first sight but on deeper digging less so. Three assumptions are interesting:
1. Forecast average Ni price = US$7.05/lb. Current price = US$4.77/lb
2. Forecast average Co price = US$32.82/lb. Current price = US$26.80/lb
3.Forecast average AUDUSD = 0.74. Current = 0.78

BAR assumptions give a NPV(8%) = A$290m. If a change the three above forecast assumptions to their current value the NPV(8%) = A$35m.

I think BAR management are being overly optimistic in their SS assumptions

Expand

Average cobalt price over 20 years is higher than the current spot price . This scoping study belongs in the fiction section in the library. If these assumptions were in the BFS they'd be laughed out the door by the bankers.

BAR Price at posting: 4.5¢ Sentiment: None Disclosure: Not Held
10 Upvote

0 Great analysis

Reply

Top Stories

COD

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

CC9

Chariot Corp unveils plans for Black Mountain "pilot mine" in Wyoming, US; shares jump +20%

RCE

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

FFM

Firefly positioned for copper growth in Canada ahead of resource update

ACW

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

There are more pages in this discussion • 73 more messages in this thread...

First 6 Last

Add GSR (ASX) to my watchlist