Nice to see some new slides in this presentation rather than just an update / regurgitation of previous ones.
For me, the main / only downside of RWD relative to peers (except Agrimin) is the unsealed trucking distance, and the cost of upgrading that stretch of road, so it will be particularly interesting to see what Bechtel can think of to improve the costs of that element of the project. For the avoidance of doubt, I'm not saying that the unsealed trucking distance makes the project unattractive, it's just the only area where the project scores relatively poorly compared to most others, and there's not much they can do about it in reality.
The current / upcoming activities slide is potentially quite encouraging, indicating Final Feasibility Study Q2-Q4 '21. For me that means it could be delivered as early as Q2 - if the protocol was for the indicated dates to cover the period of the work being done, then surely the Bechtel Review Study should say Q4 '20 - Q1 '21, because it's already underway? Might be wishful thinking though, and clearly the FS can only be completed once the other work has been completed.
I'm not sure how meaningful the EV to drainable SOP numbers on slide 4 are, given that the market valuation once producing will be driven far more by annual production / EBITDA than mine life. But, I can completely see how it would probably make RWD more attractive to strategic partners / acquirers than some of the other projects / companies. And which ever way you look at it / however important it is, there's no doubt that RWD is by far the most attractive project on this basis!
Looking forward to an exciting Q1/Q2 next year! And let's not forget the potential for Officer news to land any time
Slimbo
RWD Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
