ARL 2.33% 44.0¢ ardea resources limited

2017 Cobalt boom & 2018 Nickel boom?, page-136

  1. 34,339 Posts.
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    Has anyone done an exercise on NPV on current spot price?

    I've just done one based on,
    2014 PFS, C3 cost US$5.90/0.9 =A$6.55/lb
    Currently revising PFS:
    Annual production:
    - nickel 19,500t
    - cobalt 2,400t
    Annual revenue:
    - Nickel 19,500 x 2,204 x US4.5/lb / 0.76 = A$254m
    - Cobalt 2,400 x US55,250 / 0.76 = A$174m
    Total annual revenue A$428m

    Less: costs A6.55 x 19,500 x 2204 = A$282m

    Annual net cash inflow after tax A$128m/year.

    KNP is likely economically viable at current spot price.
    Capex and C1 cost cost should be reduced substantially as we are focusing on cobalt high grade zone.

    DYOR.
 
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