I posted a comment on one of the G6M threads as others were...

I posted a comment on one of the G6M threads as others were making some comparisons between G6M and EQR. Thought I may as well post it here. Like always just for entertainment purposes no doubt there are errors and typos please correct me where possible and DYOR.

------------------------------------
When it comes to the Open Cut mining I would suggest that G6M is in front of EQR. EQR has had a few delays so will not be starting the OC mining until middle of 2023ish. G6M I imagine will have already started their stripping. On the processing plant side of things then yes EQR is definitely a good few quarters in front as they have been producing albeit minor amounts for 18months +.

9. "from a very cursory look it looks to be a small resource with very low grades (less than half of dolphin)" "G6M grades are a known while EQR grades look to be pretty poor "

Resources

Dolphin:

Open Cut

2.93 Mt at average grade of 0.76% WO3 (22268 tonnes contained)

Underground

1.50 Mt at average grade of 1.24% WO3 (18600 tonnes contained)

40868 tonnes contained total

Mt Carbine

Open Cut

2021 -> 1.26mt at average grade of .713% WO3 (8984 tonnes contained)

2022 -> 3.5mt at average grade of .33% (11550 tonnes contained)

Underground

2.36Mt @ 1.05% WO (24780 tonnes contained)

36330 tonnes contained total.

At a cursory look it would look like Dolphin is going to be substantially more profitable based on size and grade. However good grades are only part of the picture. 2 things that are worth comparing when commenting on "we(G6M) are much less of a bet on tungsten pricing" are Capex and Stripping Ratio. Opex is also very important, I'd say the most important, but until both are actually mining and producing it is very hard to calculate and not worth the time IMO.

Note: Mt Carbine OC is only 18% of the known resource. Both G6M and EQR have other resources of most importance is
DolphinsBold Head-[email protected]% for 16016t contained
Mt CarbinesIron Duke-5.8mt @.59% for 34220t contained

Capex (open cut only):

Dolphin ->400,000 tpy processing plant.

2019->$65m

2020->$72.7m (plus whatever portion of deferred capital required for OC ~18mil??? $90m)

2022-> $92.7m (plus whatever portion of deferred capital required for OC ~20mil??? $112.7m)

2023-> +$7.5m =~$120m

Mt Carbine->1,000,000 tpy processing plant

2021->$22.9m

2022->$21.4m

Obviously a huge difference here and one of the main reasons why Mt Carbines IRR is over 10x Dolphins(397% vs 38% ).

Stripping Ratio: Grades are one thing but if you need to dig up huge amounts of waste ore to get to the ore it may not be as profitable as a lower grade ore but easier to obtain. LOM strip ratio of Dolphins OC is 1:10.3 Mt Carbine OC is 1:3.1

Looking at year 1 open cut of both operations you can see a stark difference.

The Dolphin mine schedule has its first year as 317,000 tonnes of ore at .55% grade with a strip ratio of 14.5. Mt Carbine according to the head Geologist has a strip ratio of 0.7 in the first year (“The strip ratio on that first year is quite low it's actually 0.7, we take out 740k tonne of ore and there is only 500k tonne of waste to come out” ).

A strip ratio of 14.5 vs 0.7 is a VERY different game.

A simple calculation to show the difference:

If you were to mine 100k tonnes of dirt with a strip ratio of 14.5 and a grade of .55%

100/15.5 = 6452 tonnes of ore @.55% =35.5 tonnes of tungsten.

If you were to mine 100k tonnes of dirt with a strip ratio of 0.7 and a grade of .33%

100/1.7 = 58823 tonnes of ore @.33% = 194 tonnes of tungsten.

Based on the current published information from G6M and EQR In the first year G6M will produce 173,500 MTUs of pure tungsten and EQR 303,325 MTUs.

Both G6M and EQR are 100% bets on the tungsten price and the first few years of OC mining is what is going to make or break them as successful mining companies. GLTAH in both companies. I hope both are wildly successful and partner to downstream value add in the near future.