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chipshuffler

685 Posts.

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14/07/20

23:09

Post #: 45866945
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Originally posted by nordesmic: ↑

My estimate for the whole plant capex was A$750M. I’d like to see some basis for that Argonaut assumption of A$150M for the POX plant as it does not look close to some of the Russian plants that treat concentrate. If they’re assuming a 7.5Mtpa the POX plant would be larger than the Russian plants too. The Russians plants cost US$200M+.

The AISC figure looks unlikely. POX doesn’t just add capex it adds massive opex particularly energy costs. Where has this been accounted for? GOR is a poor analogue. The capex for Gruyere was A$620M as well. Did these guys check basic facts before producing this report?

What are Argonaut’s disclosures and relationship with DEG? Did they run the last capital raise? This smells of aggressive assumptions (other than gold price) to get fees for future raises.

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Can anyone with more knowledge than me (@nordesmic, @salpetie, @lezok, & others) explain/expand on this point and the likely implications?

"Significantly, 92-93% of gold was recovered in >10% of the initial mass from flotation of fresh ore. This would substantially reduce the scale of POX plant under a development scenario (assuming POX is the preferred method for sulphide oxidation). As a comparative, Alacer Gold’s (AQG) Çöpler sulphide ore is less amenable to flotation and applies whole ore POX. "

DEG Price at posting: 72.0¢ Sentiment: Buy Disclosure: Held
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Broker reports, page-11

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