AUZ 0.00% 0.8¢ australian mines limited

You want some numbers?>$1bn Capex, 15% IRR based on an...

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    You want some numbers?


    >$1bn Capex, 15% IRR based on an optimistic 8% discount rate, >5 year payback, post-tax NPV of ~$700m based on commodity prices over 20% higher than current prices, especially given commodity prices were highlighted as the highest sensitivity to project NPV and at current prices the project would not be economic. Not to mention the fact that nickel and cobalt are volatile commodities and we’re talking about a nickel laterite deposit that are notoriously difficult to mine.


    Not trying to wish misfortune on anyone but if this project gets funding I’d be very surprised.


    But at the end of the day - you do you. 

 
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