As has been pointed out on a few other threads there are some very fundamental flaws in RNU's recent presentation and the most glaring is this quote -" Renascor’s cost for obtaining Graphite Concentrates for downstream processing into PSG is equal to Siviour’s projected life of mine unit operating cost of US$355".
People who know about the industry realise this level of operating cost is difficult to achieve in Africa let alone Australia. Assuming this is C1 cost, all graphite assessments of any credibility that that labour cost is around 30 - 40% of C1 costs. Given the average labour cost in most African domains is around 5 - 10 % of the cost of labour in Australia, how does RNU expect to achieve a C1 cost lower than Syrah? Love to see the details.
It appears this cost is based on LOM. What is the operating cost at lower tonnage?
Given all other graphite producers (and there are only 2 in Aust) and the other aspirants all quote C1 costs in the range of US$420 - US$550, how does an Australian co, with labour costs 10 - 20 x higher than Africa expect to achieve a lower cost / mt. Interesting.
Would love to see the detail. 'IMO / DYOR
RNU Price at posting:
6.5¢ Sentiment: None Disclosure: Not Held
