Hi sandfire,
I know you recently raised concerns about value attrition of an Australian dollar, plus lower vanadium price, plus increased gas costs and the rising cost of construction
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’$ conversion has fallen from us$0.72 to us$0.62. This would increase the cost of major plant, crushers, mills and roaster.The price of gas is also increasing now around $8 Gj.( $2 in 2020)The '22 BFS used us$10.50 for the vanadium price, now around us$5.The rising cost of construction since COVID.]
And, given all those factors, the new OFS is likely to see significant cost increases to the 2022BFS.
(up from $600m expected costs, but potentially, the increases will be offset to some degree by savings efficiencies)
But is there anything else, please, that’s disturbing you because as I see it Management’s job is to secure the necessary funds to develop the project at
current costs and I can’t see those interested failing to cough up because we’re three years later and the dollar’s back to Covid lows.
Thank you, and cheers
(20min delay)