KIS has just released their feasibility study. It's worth a...

KIS has just released their feasibility study. It's worth a read. A couple of interesting observations.

They are going underground so the mine life is being extended from 8 to 14 yrs. EQR is likely to be 10 to 20yr +
KIS capex is $129m with $72m needed to start & the rest when they go underground. EQR is likely to be a fraction of this. I reckon we need less than $30m (original was $65m), but now we are going to mine the king veins rather than all of it & the quarry purchase has reduced the capex.
KIS Opex is $129mtu which is good. Oliver during AGM said we would be in the 1st quartile which puts us in a similar area. This is where the quarry by product adds value as we can make $30 credit from selling quarry material.
KIS Pre tax IRR is 43% with payback in 2.25yrs. based on A70c & tungsten price range of $US280-$300. These numbers look pretty high. I'm not sure the A$ will be at 70c if the tungsten price is US$300, If these are right then ours is worth heaps!!
KIS NPV increased to $241m from $146m by extending.
EQR previous NPV was $160m without quarry and head lease (paying a royalty) & no extension of Iron Duke. That was based on $1 US and $US 290mtu. So there is plenty of upside for us. BTW KIS are paying a $24mtu royalty to Tassie Govt.
KIS expect to be in production in 2023 with 15 months to build from obtaining finance. (suggests 9 mths to get finance).
Our guys need to complete a feasibility study to obtain the finance needed to complete the Ore sorter processing and then mine the king veins.
The good news, while they are doing this, we are actually producing tungsten and quarry material. So we are along way in front.
The KIS and EQR market cap is similar at the moment, so hopefully their report gets some interest as it should also give us a boost as we will have some thing to compare.