I like your view on the study and agree the company has a lot of potential from the current market cap. I do however think the $741m NPV is inflated. Concerns I have with the study is Pre-Tax, 8% discount rate, $4.80 dmtu concentrate price.
The profitability is obviously very sensitive to the manganese price. I found it hard to find accurate manganese pricing so went through current producers. I looked at the Average CIF price achieved by Jupiter Mines last quarter which was $4.00 / dmtu
Nevertheless, it's still a good study. Post-tax, 10% discount with $4 dmtu concentrate price I worked out around a $220m NPV. That extra 80c per dmtu makes a massive difference.
From memory, (I originally looked at this weeks ago) the company is also working on a battery-grade scoping study. They will then combine both economic pathways in the PFS.
My main concern is short-term funding and dilution. I would like to know how they plan to raise funds, and how long the funds will last.
Overall I see a lot of potential and will keep a close eye on them. I'll wait to see how they plan to raise funds before I decide if I will invest.
FRB Price at posting:
14.0¢ Sentiment: None Disclosure: Not Held
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