An excellent BFS update. Especially in todays mining environment.
"Initial low capital cost of $22.9 million has been further optimised to $21.4 million as an effect of scope changes and defined costing, out of which approximately $5 million has been expensed and installed by October 2022."
A reduction in CAPEX???!! Whilst other tungsten mines are closing or announcing cost increases to their capex of more than our TOTAL capex.
59% increase in NPV ($209.6m AUD) compared to the 2021 BFS ($131m AUD) is great. However if we look at the attributable NPV to EQR (removing Cronimet(our LGS processing JV partner 50:50) share) we end up with a 64% increase in NPV (105->172.5).
IRR of 397% more than 10 times the IRR of our closest peer the Dolphin project with a stated IRR of 38%.
The new BFS has OC stage 1 and 2 mining a total rock figure of 14.4mt the old BFS had a OC mined tonnes LOM of 14.27mt. This indicates to me that this update is still only using ~15% of the known resources. I need to read through the whole doc later on so this may be incorrect.
Well done to the EQR team and all holders. Lets hope the rest of the market wakes up to the potential at Mt Carbine.
EQR Price at posting:
4.6¢ Sentiment: Buy Disclosure: Held
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