I previously quoted a figure for capital cost of $1.7B but the later Optimisation Study estimates it at $1.3B. That is a good improvement but is still a very large sum. Multi-element REE ores do need complicated processing (as Lynas found out) and it will take time to get it all working efficiently. The study used a discount rate of 8% which is reasonable for today's economics, giving a post-tax NPV of $1.2B (without the KMP) and so the current MC of $281M looks pretty good value. Of course, it is all based on the supposition that management can deliver the Dubbo Project without going broke.
ASM Price at posting:
$1.96 Sentiment: None Disclosure: Held
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