Alk Chart, page-2282

Will be interesting to see this Boda/Kaiser scoping study. Thought it should be out already?

The neighbours in EVN had site visits at both Northparkes and Cowal over the past couple of days judging by their asx releases... I've put a snippet of the Northparkes financials from that asx release below... note that it's costing them ~A$37/t ore in mining, milling and admin costs... their rock (0.67% Cu, 0.28g/t Au) is worth around $97/t at spot prices or once you back out the gold stream around $77/t.. so a $40/t margin on ~6mtpa of which EVN has 80% ownership. Not too shabby.

Boda/Kaiser likely runs at 20mtpa imo (eventually).. so far more scale than Northparkes (not underground constrained). Will be a big open pit at a relatively low strip ratio looking at the pit shell... so there's an argument that if North Parkes is $37/t then Boda/Kaiser could be sub A$30/t cost. It could be something closer to the C$24/t (A$27/t) at Hudbay's BC Operations (0.27% Cu, 0.07g/t Au) - see second snippet below.

If we take the Boda grades (0.17% Cu, 0.35g/t Au) and recoveries (87% Cu, 81% Au)... at spot pricing the rock is worth ~A$57/t... take off selling (TCRC) and royalties and its around A$48/t.

If we assume they can mine it at A$30/t.. we have A$18/t margin on possibly 20mtpa for ~A$360m pa EBITDA. Capex is obviously a big headache and it would be nice to find a higher grade starter pit to get that rapid repay to improve the economics... but the 800mt of resource here has to be worth something here.. lets see where the SS figures coming out.. hopefully a healthy margin to attract a partner.





**By the way.. with RRL McPhillamys estimated capex cost recently of ~A$1bn for a 7mtpa CIL plant BUT with a heap of added water and power infrastructure that is unlikely needed here.. my thinking is capex for a 10mtpa case for a Cu/Au floatation.. is ~A$800m.. maybe A$1.2bn for a 20mtpa case (guessing).