I went back to the 2013 PFS for Buena Vista and Nevada Iron's October 2013 estimate of the free cash flow generated by Buena Vista was US$565 million, with an NPV at a discount rate of 7.5% of then US$236 million. This is for a 67.5% concentrate.
The economic assessment assumed a 67.5% concentrate price of US$104.29/DMT FOB West Sacramento.
Cost breakdown for the 67.5% concentrate is as per below:
Mining - $17.20
Processing - $17.55
General and administration - $2.19
Offsite freight to port and loading -$26.81
Total FOB - $63.75
The 62% DSO product shouldn't require the processing, so FOB cost will be around $43 in 2013 dollars. 8 years on, costs would have gone up. Assuming 4% escalation per annum in these costs, the 2021 cost would be around $63 for the 62% DSO product and $87 for the 68% concentrate product.
I might have a crack at running the NPV numbers that Rodney worked on with the revised costs.
Hopefully prices stay low on Monday, so that I can top up further.
MGU Price at posting:
12.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)