Overjoyed with 90% loss.
Whats the explanation for the 90% drop and who exactly understands and is happy its happened again?
Does "backing" mean bailing out down to 10% of its value??
Usually crashing 90% isnt a positive sign?
Other concerns include
"Shoutout to $CRML, @TonySage7237 and
Malcolm Castle for the most shameful PEA I
have seen in my life. Kudos to
@Sustainabledud1 for all his commentary.
The PEA for Tanbreez outlines a whopping pre
tax NPV of US$2.7-3.4B and an IRR of 180%.
WTF! CRML and the CP/QP have some gall!
Here are a bunch of fun things I noticed whilst
flicking through the study
1) Tanbreez only has a S-K 1300 compliant
resource, no reserve. Not to matter, Malcolm
Castle has created a notional reserve equal to
83.5% of the 45 Mt resource. But what is the
point? They go on to create a mine plan that
extracts over 150 Mt from the much larger
management-referenced 4.7 Bt target resource.
2) The highlighted rows in the mining plan don’t
reconcile. How is the duration of Phase 4 over
years 14-17 equal to 5 years? How is the
duration of Phase 5 equal to 5 years
3) Apparently, no mining losses or dilution
factors are required because of the open-pit
mining nature. Tough ask given the average 8m
thickness of the kakortokite units.
4) The biggest WTF (x 1000) is the processing.
CRML report a planned mechanical separation
process that has been tested by unnamed
independent consultants. They assume a flat
93% recovery in a mechanical process… they
also assume 100% payability for a Eudialyte
concentrate that is, as @Sustainabledud1 has
pointed out, is 3% TREO with a massive silica
gel problem. This is mining FRAUD
5) They also very significant sales of feldspar
and arfvedsonite. CRML actually assume they
can sell the arfvedsonite locally. I imagine they
would have more luck selling ice to the
Greenland eskimos.
6) To get an operation of 12.5 mtpa up in
Greenland, total capex of US$150M is
estimated. This is insane
. Includes a large
port too
7) But given they didn’t bother estimating a
shipping cost, maybe they shouldn’t have
bothered including a port.
Anyway, could've written 100 points here but
this belongs in the all time mining hall of shame"
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