daytrade diaries... january 21, page-157

Madmuz here's my thoughts on REY

"Positive Duchess Paradise Project Pre-Feasibility Study Results
Highlights
Positive Pre-feasibility study outcome meets initial concepts
Initial operations of 2Mtpa from trench highwall mining generates:
o IRR of 34% at current coal prices and exchange rates
o NPV = $88 million at A$/US$: 90c and $161 million at A$/US$: 80c
Low capital costs of A$113 million
Production to commence in 2013
Rey has committed to Definitive Feasibility Study on the trench highwall
mining system
Additional conceptual studies of underground operations demonstrate
potential for good economics at production rates above 6Mtpa
Studies on the larger underground project are continuing"



"wow NPV is very reliant on the USD/AUD price

at 90c its $88m = 34c REY

at 80c its $161m = 62c REY


The Cap Ex isnt huge and this is just a 2Mt pa operation

Given the size of the JORC being 500Mt's + they should really look at a 10Mt pa or 25Mt pa operation as a 2Mt pa has a mine life of 250years lol"



The bottom line is the PFS has shown its a profitable operation Id be surprised not to see another offer get lobed in by Crosby