moly is feasible

To Fluffs and those who need to scrape up on the meaning of IRR:

Definition: IRR is that rate of return at which the NPV from an investment will become zero. It is that rate of interest that makes the sum of all cash flows zero.

In THR's case, if you replace the 10% with 25% the NPV will become zero, and that’s your IRR. This means that THR is earning 2.5 times what it would in the bank or on an investment yielding 10%.

Capital Budgeting thumbrule #1: NPV is always a better/ more accurate indicator than IRR when determining feasibility/ S/H wealth/ profitability of a project. $26M sounds good to me. Not pointing any fingers but those who make 'factual' generalisations need to back up their opinions.

Here is an example of one of many Tungsten companies with an IRR <24% whose project is seen as "technically viable" & "exceptional economics" and is proceeding with mining (ORM:AIM has a very similar NPV to THR ie, 28M euros but a lower IRR):

Ormonde Mining (ORM) The Joint Ore Reserves Committee compliant Definitive Feasibility Study (DFS) on their 100% owned Barruecopardo tungsten project in Spain is encouraging. Assuming a capital cost of €48.5m, production of 227,000 metric tonne units (mtu) per annum of tungsten trioxide (WO3) for nine years, and an Ammonium Paratungstate (APT) price of US$350 per mtu (/mtu), a pre-tax Internal Rate of Return (IRR) of 52% and a pre-tax Net Present Value (NPV), assuming an 8% discount rate, of €120m can be estimated. Obviously sensitive to APT price, at $250/mtu, the pre-tax IRR falls to 19.9% and the pre-tax NPV falls to €28m. As part of the DFS, a proven reserve of 4.96 million tonnes (Mt) grading 0.33% WO3 for 1.64 million mtus of contained WO3, and a probable reserve of 3.73 Mt @ 0.26 % WO3 for 0.98 million mtus, has been outlined. The DFS has just considered open pittable reserves, mineral resource extend at depth, such that an subsequent underground mine could be developed. Their Managing Director says “the results of the independent Feasibility Study confirm both the technical viability and exceptional economics of this major tungsten project. We now move towards the development of the Barruecopardo Tungsten Mine as a low cost, strategic tungsten asset, transforming Ormonde into a major European tungsten mining company.” They expect plant commissioning to commence in Q3 2013.

http://minesite.com/media/pub/var/release_downloadable_file/36185.pdf