I wonder if they could get A40 to process something thru their...

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13/10/22

18:31

Post #: 64186690
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Originally posted by WhatsTheTip: ↑

DSO has been ruled out as the mechanism for mining the majority of the Dome resource, but I'd also note that was never the suggestion.

I've attempted a transcription below and DSO is under consideration for the time window before a concentrator is able to be commissioned. A lot will depend on what sort of DSO prices exist for ESS ore when (I assume its when) ESS gets its mining licence. You can't concurrently note that $2,500/t provides mind-blowing economics, and dismiss DSO if DSO were to achieve the equivalent of prices higher than $2,500/t for Spod. Yes there is a discount to what you could get if you had a completed concentrator, but concentrator sourced Spod won't be happening till 2025 at the earliest.

If Spod prices do decline as additional projects come online during 2024 and 2025, there is a distinct chance of the scenario occurring whereby 2023 and 2024 DSO prices (per ton of input ore) are higher than 2025 Spod prices (per ton of input ore). In this situation, DSO is both quicker, easier, lower cost and provides higher financial rewards to shareholders than saving this ore for "value add" processing to Spod. At the moment, almost all commentators are predicting substantial falls in the spod price increasing the likelihood of this scenario.

My attempted transcript:
"Very good questions, and its certainly part of our thinking. Obviously we need to get a mining lease in place and mining approvals to do DSO at the Dome North resource because its still under an exploration lease. The mining lease is under application. The way to think about is that if you sent out DSO its a lower value add product. Of course the capital requirement is a lot lower too. But but if you do send out DSO you are robbing yourself of the opportunity of adding value by selling, by processing that product into a concentrate. I think there is an opportunity for us, as Core has done, where you position yourself to build a concentrator and produce concentrate and then in terms of creating additional funding you look at what opportunity there is for DSO. Because it certainly is a really good price. Just remember too that price relationship between DSO and concentrate is one where as concentrate falls, DSO falls a lot harder because to that value add difference....Concentrate is the main game because you generate more per ton of resource."

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I wonder if they could get A40 to process something thru their plant, wouldn't be too far to ship it.

ESS Price at posting: 50.0¢ Sentiment: None Disclosure: Held
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I wonder if they could get A40 to process something thru their...

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