I thought they were going to release a revised JORC with the stage 2 feas? Must be wrong, hopefully it’s around the corner. Couple of notes...
The stage 1 DFS was $411m at pricing of USD$539/t. This stage 2 is $834m or adds $423m incremental NPV of which the bulk of this uplift will be a result of changing the price assumption from US$539/t to US$690/t.
Opex doesn’t come down - from $316/t in stage 1 up to $324/t stage 2 - all excl. royalties .. the the economies of scale of a larger facility do not reduce costs over and above increased strip ratio... which I find weird.
The royalty increases from 5% to 8.5% reflecting my belief that the stage 1 figures missed the AGO royalty (5% on one lease).
The incremental capex of $120m seems incredibly high also given stage 1 was quoted at $140m - much of the infrastructure shouldn’t require duplication.
Not the greatest result - all driven by the price assumption jump to US$690/t... hopefully the JORC update is around the corner and adds tonnes and grade.
AJM Price at posting:
37.5¢ Sentiment: Hold Disclosure: Held
