I took a quick look at the appended May 2020 Prieska economics in the context of it being almost a year old now.
On one hand you have much higher Cu/Zn prices;
Cu at US$7900/t versus the assumed US$6700 - an 18% positive swing
Zn at US$2720/t versus the assumed US$2340 - a 16% positive swing
But countering that is the exchange rate movement which is now at 15.3 (ZAR to USD) rather than the assumed 18, a negative swing of 18%.
I have marked these changes onto the slides below from the BFS. It shows the exchange rate change has decimated the IRR/NPV, only perhaps partially countered by the positive price increases. I am not really sure how to aggregate the opposing movements into an adjusted NPV/IRR (are the +18% Cu and +16% Zn additive?) but I suspect it's not in the direction we want, and this may well be the issue delaying financing. I just hope the recent exploration sucess may give investors a 'regional play' reason to add to the Prieska project reason and get this thing happening!
ORN Price at posting:
2.7¢ Sentiment: Buy Disclosure: Held
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