Ann: High Purity Alumina Prefeasibility Study, page-52

EXCELLENT POST ...............AJ

AND 100% CORRECT.

Yak52
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Let me add this ..... once you've spent $200m on building the house and you start receiving an annual rental of $193m for say 20 years ..... what would that rental business be worth, using a multiple of say 10x?

Businesses are valued on the basis of return on capital invested. Often expressed as Internal Rate of Return or IRR. The IRR stated in the PFS is greater than 50% which is very very good especially when you compare it to the return on other investments.

The payback period, or time to repay the capital investment os approx 2 years is also very very good and would certainly attract serious investors.

Next steps are to de-risk the project by completing DFS, building pilot plant to prove product quality and scaleability and produce samples to send to potential customers.

Typically what happens is that the sp will gradually increase as the company moves along the de-risk curve. If you want proof, check out the sp graph for A4N which is doing something similar. Check their market cap too (it's A$420m) and A4N does not have all the other potential such as gold from tenements in WA and NT, Vanadium, titanium, fluorite etc etc. AJ
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