General discussion, page-1259

ay?

BSE average TPA as per DFS = 23.9mtpa
6.1% HM = 1,457,000t
71% ilmenite = 1,035,000t of ilmenite through front end.
Total ilmenite production 960,000t
Recovery of ilmenite 960,000t/1,035,000t = 92.7%



MRQ
17.5mtpa at ~7.5 HM = 1,312,500t
42% ilmenite = 551,250t
90% recovery (assumed improvement from first pass recovery) 496,000t.

Then
8500t of rutile in the front end moves to 6825t at 80% recovery loss.
At 92% Ti02 content 6825t is equivalent to 16650t of 42% Ti02 Ilmenite and as per comments from team potential to blend rutile into ilmenite and produce higher ilmenite concentrate.

Therefore new total production 567,000 ilmenite at 42%.
To produce 48% ilmenite 42/48 x 567,000 = 507,000t

507,000t x 250 AUD ~ (185usd/t) = 127M AUD
Zircon production (1.75% of 1,312,500) = 22968t
Noting strandline takes 60,000t or contained zircon and produces 54000t of 28% zircon + 34000t of 66 zircon = 37440t zircon total therefore recovery through circuit = 62.3%.
So, 22968T zircon moves to 14310T which converts to 51,000T of zircon concentrate at 28% concentrate.
51,000t 28% zircon concentrate for 825/t AUD = ~40M AUD.

Annualised revenue ~ 167M AUD. IMHO.
Assume similar opex as BSE ~5 mined/t 87m.
Annualised profit 80M AUD p/a.
minus 25% contingency for risk
60M AUD.

On 17.5mtpa and ~10/11 Y LoM tonnage is around 175-200mT.
NPV discounted at 8% rate with 175M capex NPV around 280M AUD.
MC to NPV 5.3%.

Will need to wait for the SS to see where it lands.

SF2TH