Concerning any capex costs, which the DFS will begin to quantify:
1) Australian engineering and construction companies will fall over themselves to give their very best prices, including the skilled labourers. Good.
2) Any big pieces of the mill, eg. roasters, kilns, ball mills and crushers (if needed) will likely be sourced overseas. Mostly bad because of forex, but some good because they've seen their order books dry up.
Judging from RBA moves, other commodity prices, Fed in-put and general economic winds, the AUD v USD will continue in this forex range for some time, perhaps years, thereby affecting CSD, Sn$ and capex positively. Once the DFS is published -- this year?!?! -- note revised recovery rates in tandem with increased reserves, AISC cost per ton and forex assumptions. I hope two red flags don't appear here: a) a Sn$ above current prices, and; b) unreal forex spreads between USD v AUD.
Remembering past studies I was impressed at their very conservative numbers then still giving a fantastic IRR. I expect this philosophy to continue.
OV
CSD Price at posting:
5.1¢ Sentiment: Buy Disclosure: Held
