Threadbull,
I've done this my whole career, evaluate projects.
I stated ore reserve value, not cash flow etc. No need for increased Capex / Opex or additional investment.
AVZ just added 15% of the existing defined RD JORC ore reserves to their part of the total ore reserve and 15% to all additional ore resources, not yet defined / discovered as JORC ore reserves; like CDL et al.
So of the JORC defined 93Mt OR for RD, 55.8Mt turns into 69.8Mt owned by AVZ. 14Mt more lithium reserves, which is 0.55Mt LCE (Approx $AU10B at todays price, but most likely much more using a LCE price forecast).
Using 100Mt for CDL, "doubles tonnage" turns 60Mt into 75Mt. Yes, assuming same recovery factor etc. CDL would require additional investment.
If I had the economic model and simply change ownership from 60% to 75%, like one would do evaluating a fair price to purchase a slice or make their slice bigger, the NPV would increase dramatically. No additional investment required unless you increase the output tonnage per year or change a DFS parameter etc.
I would assume finalising the deal with Dathcom Mining was an important step as show of "commitment", project continuity or the like related to the ML approved. If I was on Felix's committee, I would definitely point out the plus of having that resolved and AVZ now 75% partner.
I'll ask Nigel if I can get or they will post an update to the NPV numbers. Cheers.
- Forums
- ASX - By Stock
- Ann: Capital Raising Presentation
Threadbull,I've done this my whole career, evaluate projects.I...
-
-
- There are more pages in this discussion • 26 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add AVZ (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
SER
STRATEGIC ENERGY RESOURCES LIMITED
David DeTata, Managing Director
David DeTata
Managing Director
SPONSORED BY The Market Online