IXR will have to mine at least 4 times (conservatively) as many tons as MEI to achieve the same basket. If they have comparable input AISC per ton than the profitability of IXR could potentially be zero while MEI with a lower basket price could be running 70% gross profit margin. Lower basket price yet an infinitely better project.
My back of the napkin calcualtions were done using known data. At the bottom of the announcement is the size of each block. By taking the hectares of each block, estimating how much of each block has been drilled as can be seen from the drill hole locations, multiplying by 10 metres (the average drill depth) and multiplying by the density of clay I get a figure of ~ 400MT. Of all those inputs the only one which may have a variability is the % of each block drilled. Otherwise pretty accurate. Worth noting is the actual depth is unknown (upside potential) and most blocks haven't been drilled (also upside potential)
Noone cares about basket value except companies that have very little potential and need to try to put some spin to make their project seem better than it is. 0.2g/ton gold is not even close to 62%Fe in value of a project. Go figure
MEI Price at posting:
4.2¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)