Ann: Cost Optimisation Delivering Significant Savings - Goulamina, page-53

Excellent announcement today, and great to see the announcements starting to roll in!

I thought I'd run a little exercise and plug those transport/handling and CAPEX savings into our old PFS. This should give us a very conservative NPV estimate for Goulamina (since the PFS was ultra-conservative). Since we have the old values, we should be able to add the present value of the cost savings onto the original NPV values.

For the 1 Mtpa 14 year LOM case:
Annual 6% spodumene exported = 180,000 t (188,000 t from the PFS p.22)
Transport/handling savings = $88/t
Original NPV10 = $85.6 m
PV of cost savings = $3.1 m + $5.0 m + $106.1 m = $114.2 m
New NPV10 = $199.8 m

For the 2 Mtpa 10.3 year LOM case:
Annual 6% spodumene exported = 340,000 t (353,500 t from the PFS p.22)
Original NPV10 = $136.6 m
PV of cost savings = $3.1 m + $5.0 m + $170.2 m = $178.3 m
New NPV10 = $314.6 m

Now this is using the PFS's 6% spod sales price and before taking into account the hefty resource upgrade heading our way!

Happy days

As always, please do your own research.