This successful DFS and the track record of the Robert Friedland lessen project risk, not increase it.
The engineers who designed the Clean iX process and the engineers who conducted the feasibility studies know more about Sunrise project than mining engineers from other projects even if they do have industry experience.
The variance between the PFS and the DFS are higher processing rates of cobalt, and the added optionality to increase ore throughput from 2.5mtpa to 3.5mtpa in later years subject to economics and permitting. I believe this is what buyers were requesting.
The base case at current nickel price and 20% lower cobalt price, of 19% IRR is fine. The main risk is price risk, naturally. Prices are likely to rise by the time the project is selling metals due to EV battery demand and remain high for a long time, so actual return on capital could turn out to be far higher.
Value of CLQ equity to project NPV is about a third, compared with PAN equity to NPV which is roughly three quarters (for example). You get very good value for money here. It seems many are blinded by IRR but it is the price you pay for the shares relative to NPV that will make you the money, provided the price of Ni/Co behaves and you trust the work done by the project engineers and the management.
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