Hi There,
Thanks for the good wishes - I am well albeit much detached from the socials these days.
A brief post from me (for a change).
*Notes
-I have averaged the recoveries across all tenements as an average.
-used current spot pricing for REO from SMM
-used an estimate (mine) for what i believe could be the average resource grade which would be inputted for feasibility. i.e. if you had a JORC resource you select the higher grade portion to input to feasibility (feed grade)
As i had suspected, the recoveries were largely in line with what MEI had released albeit these better average on bulk. Note the recovery figure in my table below is simply a mass recovery figure. When you have 46% of the REO (on average) as Ce and you recover 6% your mass recovery is low. Thankfully Ce is worthless. Average recoveries are 50% or 53% ex-ce.
View attachment 6115637The potential revenue generated based on a 5mtpa front end design would be ~105M USD at today prices.
That assumes an MREC produce at 92% concentrate level (typical for IAC) received a 70% payability for product.
The 100% seperated and refined reveneue (aka if they punted the MREC through their downstream JV option) would be 163M usd.
The key variables which impact this revenue is;
-The average grade of the resource going in (i have used 3300ppm)
-Spot price for the REO
-The recoveries (These won't significantly change unless they acid dose).
If you believe that the JORC and/or average mine feed will be lower then the revenue decreases. As off today 500ppm decrease in average grade decrease revenue by 15M usd. An increase of 500ppm has a similar impact.
Perhaps most importantly - using average opex cost from other IAC projects with similar purported circuitry the project would make ~40m USD p/a profit IMHO.
Whilst this may not seem significant, i remind that most production of REO today is not make a profit at todays prices. Again this is analysis based on an average of the recovery data.
The cupim south and northern concession are both higher in average on most elements and thus if that was the place to first be mined the average recoveries and revenues therein would be slightly higher than what i have presented.
All of the above is just my opinion and some scratching put together on little sleep and little time.
I am not in the raise although have opportunity through fosters.
As an early investor i hold more than enough - i'll support on market instead if the shares washout at or below the raise price.
I am happy they are raising a decent sum. It's the right kind of money in now to move it forward.
Not many distinguishing elements now to MEI aside from the market cap which i suspect will shortly close.
Back to the beehive for me.
Wishing everyone the best and happy investing.
SF2TH
(20min delay)
