■ LRV announced 11/4/25 the DFS will use USD 2,700oz for gold and USD 25,000pt for antimony and these are conservative values versus SPOT prices USD 3,100oz for gold and USD 60,000pt for antimony.
Even if funding is $100m (+$25m) & if split is $80m loan and $20m revolver then the loan of $80m can be repaid with a debt service cover ratio of 3 TIMES over 12 months if the net cash flow is $20m per month ($240m).
I think that the cost of engineering modifications will have a rapid payback ... and be project financed.
■ IF LRV produce an additional 1,000tpa and antimony is USD 100K pt @ 65% payable = USD 65K pt /AUD 100K pt then thats an extra $100Mpa to LRV.
■ IF only an extra 500tpa then that's $50Mpa and very a significant boost that might come from a 9% higher recovery of antimony.
■ DFS will tell us what the operational & financial metrics are and the lenders will likely see a significantly reduced risk profile when looking at the project risk profile and the price outlook.
■ Anyway ... I am confident that HILLGROVE will secure project finance even if $100m is required ... so onto the performance rights proposals.
Simply, LRV to deliver HILLGROVE with the performance rights reset to achieving this outcome at DFS production levels by say 31/12/26 AND shelve the share price metric or reset this to > $2 for 20 consecutive trading days.
It will avoid a lot of shareholder angst and embarrassment if the motion is defeated or withdrawn.
AIMHO/DYOR/GLTAH
LRV Price at posting:
90.5¢ Sentiment: Buy Disclosure: Held
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