tightly held, page-14

thanks todays
but i fear you overestimate me.
i am genuinely interested in all of this, that is for sure.
and i do try to pick up as much info as i can, be it for investment purposes or just pure interest in the 'rockology' etc.
knowledge is power, as they say.
sometimes, as they also say, a little bit of knowledge can be dangerous.
i probably swing between the two.

interestingly...

if you put mt C and Watershed together in terms of resource and proposed mining rates and reported grades....
(i've temporarily let myself out of the sin bin right or wrong)

the combined mines would have the capacity to produce nearly 1 Million mtu (10,000 tonnes) of WO3 per year for ten years. (totalfor ten years 100,000 tonnes WO3)
(from 2MT of ore each i.e 4MT/yr)
of course this would be beneficiated to ~1MT pre-process plant (say 500kt each)
at $AU250 (same as US$200 if 0.75 exchange rate)
this would be worth AU$245M per year.
if mining costs were AU$150 per mtu (iii reckon 120 vml reckon 150) then...
245M - 150M (revenue less costs) would
approximately = $AU95M EBITDA per year.
if the mines' lives are 10 years
and assuming NO upside in terms of grade
this could bring in nearly AU$1000M over the assumed 10 year lives (simultaneous production).

i believe this to be in the vicinity of
~30% IRR. (don't trust this figure DIY)
this figure assuming AU$130M acquisition and startup cost (both mines)plus the first years costs up front (AU150M)

Acquisition cost may be far less than I am suggesting.
you can bet it won't be far more, or parties would 'walk'

I also believe that the 2 shows individually would be approximately 50:50 in terms of these totals (should they go it separately) given the slight tonnes/grade optimisation disparity between the two deposits.

as everyone is aware, the sensitivity to the metals' value going forward is the BIG factor in terms of risk.

anything less than say US$150 (roughly AU$200) per mtu would be a real concern.
conversely, anything over US$200 (roughly AU$250) per mtu
would be fantastic.

see what happens next week,...perhaps.