Ann: Cleaner & Cheaper Power for Sorby Hills, page-168

First 168 Last

Share
Profile

Follow
dwjd

1,680 Posts.

107

12/05/22

11:38

Post #: 61363483
Share
Originally posted by Verily1: ↑

In regards to the size & cost of the plant, I think it is being answered by the research houses and BML itself.

@touquoy posted Petra's research on these threads on April 29th and I attach below the relevant section.

Petra would have discussed these issues with our Management Team before publishing this research which they date as April 2022. So while the best source of the size of the plant and the resultant capex would be BML, the second-best source would be a research house that covers BML like Petra.

I think you can draw confidence from the fact Petra is forecasting an expansion to 2.2mtpa and a capex of $220 Million.

Lastly, BML has altered its plans in order to deliver the DFS before the Offtakes. This is a very strong signal that they are going to deliver a superb DFS.

In addition with all the demand destruction occurring in other sectors, resources will be freed up for viable projects.

Best

V

Investment Case
The PFS outlined EBITDA of A$127m in the first two years vs. the A$75m LOM avg, driven by high grades.
A higher resource could underpin a plant expansion in year 3 that could maintain production as grade declines.
We assume an expansion to 2.2mtpa from 1.5Mtpa and believe the market will be cum-upgrade upon release of the DFS.
This can be done for a relatively modest capital cost, which we estimate at A$18m (vs. A$183m PFS capex).
Given cost inflation, we assume A$220m in capex.

Expand

OMG.. I do so hope you are right as I have bled a 6 figure loss over past 2 weeks & getting very grumpy..yesterday Made me quite sick !! DWJD
BML Price at posting: 31.5¢ Sentiment: Hold Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

SNX

Sierra Nevada raises $2M for silver exploration at Blackhawk

TLG

Talga Group wins key permit for flagship graphite mine in Sweden

NVU

Nanoveu surges 10% after benchmark testing for new AI chip begins

IRX

InhaleRX snags $38.5M in funding from VC biotech funder Clendon

MTH

Mithril's drilling in Mexico picks up silver at 997g/t, gold at 28g/t

What's causing the cost-of-living crisis, and how to navigate it

M4M

Macro, Norden set up transport solutions initiative for West Pilbara

SWP

Swoop lobs $18M offer at microcap telecom Vonex – in which it holds 19.9%

Week 42 Wrap: HotCopper's top picks; new ASX 200 record; world yawns at war

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint