The financial metrics always going to be hard to make this project look great given time to first ore (2.5yrs), capex ($90m) and the small amount of inventory allowed to be modelled under JORC (3.5Mt of a 10.0Mt resource).
On the spot case (above) the project generates A$444m FCF which is basically $90m/yr over 7years mining ($630m) less capex ($90m) and taxes (~$100m).
If they were able to turn 7yrs mining (3.5mt @ 500ktpa) into 17yrs (8.5mt @ 500ktpa) then that additional 10yrs @ A$90m FCF b/tax adds up to some meaningful FCF... but drilling closely spaced holes 1km deep from surface doesn't make a lot of sense.
AMI Price at posting:
25.5¢ Sentiment: Buy Disclosure: Held
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