Quick look at Okeip. Extract below from the 2021 scoping study done as part of due diligence to acquire the project.
So what has changed in the last 4 years to impact the A$170M NPV?
- Resource confirmation drilling seems to suggest the resource and associated grade are in-line so no change there - although indications of likely resource extensions to increase mine life
- Copper has increased 25% from the assumed US$7600/tonne - so that lifts NPV by some 80%!! - making it around A$300M
- The ZAR:USD exchange rate is now at 18.5 (cf 17.2) which I believe is 8% to the positive so a 25% lift to NPV - taking it to around A$360M
- Not sure if they have done more metallurgical tests to confirm recovery - so will leave that as is for now.
The other variables are less impactful so on balance we should expect a significant improvement to the OCP NPV - more than doubling from A$170M to circa A$360M - unless copper recoveries prove problematic? Not bad for a CAPEX of around $60M and for company with a market cap of under $100M and another bigger project in Prieska yet to add to the mix!
Am I missing something??
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