WORLD'S BEST UNDEVELOPED IO PROJECT, page-360

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reallyray

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06/08/21

09:55

Post #: 55075748
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Originally posted by Johnyb888: ↑

Now lets run the same scenario for MGT.

We don't (at least I haven't been able to find) the Opex for MGT's 68.5% IO. They only give a $54USD 62% equivalent with no clear mention of how much they assume the grade gap is between 62% and 68.5%. This is by the way quite a concern to me, it should really be mentioned clearly!

But lets just go with $54 since its the only number we have.

If 62% IO drops to $40 you are already done. They are hammering money just on OPEX alone, not to mention their running capex will be much higher and their income (based on 2.7Mpta) will be much lower and they would still need to pay interest and all other costs as well.

Bank says NO!

Of course you can run this scenario at higher IO prices. But if you ad all costs for MGT you really need an IO price of at least $100USD. This will be hard to get signed off from a financial point of view. Not to mention that once up and running they will be vulnerable in any economic down turn.

On the face of it CAP and MGT are similar but in terms of economics there is no comparison IMO.

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How can MGT management make a clear mention of an assumption of grade gap? An assumption is just that isn't it? And why are you not adding $10 per % grade above 62% for MGT whereas you are for CAP? I hold both but just interested in your reasoning

CAP Price at posting: 15.5¢ Sentiment: Buy Disclosure: Held
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WORLD'S BEST UNDEVELOPED IO PROJECT, page-360

Top Stories

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