classic example cheap xstrata t/o sphere, page-7

Check out Grange Resource's CAPEX costs per year apportioned over a 40 year mine life.

$2,570,000,000 / 40 = $64,250,000 p.a.


Compared to Pluton:


$700,000,000 / 20 = $35,000,000 p.a


Now PLV stated in the PFS that they would only produce approx 4.4mtpa compared to GRR at 10mtpa, but the kicker here is that the resource will increase without the CAPEX costs increasing. This will become apparant as we receive more JORC compliant results because we know the PFS only covered Stage 1 of the project.

Lets assume the resource size for PLV doubles when Stage 2 is released, as 123 stated in the previous post.

The other important point to note is that the CAPEX estimate in the PFS was conservative and the presentation after stated that there was potential for a further $150m - $190m to saved.

So if we use a revised CAPEX figure:

$550,000,000 ($700,000,000 - $150,000,000)/ 20 =

$27,500,000 p.a


Looks very competitive to me.