Hey@benz 560, let me do a simple (but relevant, I think) calculation. Based on 14 Dec 2021 Economic Assessment, with updates and assumptions as noted.
AISC USD$2.22 /lb Current Cu Price USD$3.60 /lb So Operating Margin USD$1.38 /lb Production rate per EA: 36kt Cu in first three years , with first copper sales in month 7 So I will infer no production for 6 months then 1.2kt Cu per month thereafter (Operating Production) Operating profit at Operating Production and Operating Margin: USD$3.3 M per month On one side I have ignored that payment for copper in concentrate is a bit less than quoted Cu price, but I have offset this a little with leaving out the Gold credit. So Op Profit of USD$3.3M per month is AUD$4.7M per month - let's be conservative and cut this back 20% to AUD$4M per month. Cap Cost is AUD$26M - to be conservative let's increase this by 20% to AUD$32M. So capital would be paid back after 15 months (6 months pre-production, 8 months production at OP AUD$4M per month, and one month extra for the interest costs). Still looks a good prospect to me! Even at 15 months pay back!!
HGO Price at posting:
4.8¢ Sentiment: Buy Disclosure: Held
