The "Green Eyed Monster" True or False ?, page-15

When the design team come up with a DFS (definitive feasibility study). It means +/- 10%-15% accuracy. It is not exact and errors can be cumulative to get to that 10%.

The correct response by management is to hold (raise) sufficient cash and borrowing facilities to allow for this and more. Often enough during commissioning that extra buffer gets used up or near enough to it. Raising more cash then is a real test for the 'true believers".

Conversely, on the plus side and almost inevitably. Once the mine is running properly say for six to 12 months post-declared commercial completion management usually moves to re-finance the loan at a lower interest rate. Say from 12% to 10%. This is justified being lower risk. That has the effect of improving profitability significantly with a concurrent lift in SP.

I would think that's around the time RXM and partners will announce FID on stage 2. SFR (Sandfire) jumped the gun on that at Motheo - because they could. More Kudos to them (you guys can see the SP).

All IMVHO