Ann: Investor Webinar, page-51

First 51 Last

Share
Profile

Follow
WinkyDinky16

2,281 Posts.

77

14/04/23

17:32

Post #: 67282834
Share

Originally posted by paulgf: ↑

Yer totally agree with you on the 230 USD / Kg scenario. I certainly have not bought in on that price expectation. I expect some upside on where prices are currently but to me that would all be bonus. My point was that sometimes NPV analysis which gives you one number at the end after lots of assumptions, really doesnt fully describe or explain the advantages the project has.

This project can do very well on very realistic price expectations that was modelled by Euroz and given it will be relatively low capex and the bundled mining license means it will be cashflow positive sooner than later and will minimize on shareholder dilution and lowers the project risk significantly.

Plus you have a ceo smart enough to see a staged approach can unlock a lot of shareholder value which isnt captured in an npv analysis and isnt mucking with the intent to doing years and years of analysis ( and even drilling beyond some point just for the sake of it) that after some point is only telling you want is common sense, you have a viable project that doesnt require massive capex to get up and going. So the CEO's strategy of going straight to building out a demo plant is very sound and smart to me.

The other thing one needs to bear in mind with the move up to 1500 Mtpa processing is that at that stage Malawi govt will likely reclassify the mining license required and they will have the option , which they will likely take up in my view, of acquiring 10 % of the project. This doesn't undermine the numbers at all even with the conservative Euroz numbers. The sovereign risk with malawi remains the biggest risk for me but if the malawi government are genuine about developing this resource for the long term and are happy to limit their takeup to 10 % of the project, I would almost argue that is a fair giveaway to get jurisdictional certainty and regulatory approval for the larger scale plant and this shouldn't discourage investors taking on the full build out of the plant.

Expand

what happened today... people finally waking up! hopefully assays Monday )

LIN Price at posting: 31.0¢ Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

MTH

Mithril's drilling in Mexico picks up silver at 997g/t, gold at 28g/t

M4M

Macro, Norden set up transport solutions initiative for West Pilbara

SWP

Swoop lobs $18M offer at microcap telecom Vonex – in which it holds 19.9%

Week 42 Wrap: HotCopper's top picks; new ASX 200 record; world yawns at war

TLG

Talga Group wins key permit for flagship graphite mine in Sweden

IRX

InhaleRX snags $38.5M in funding from VC biotech funder Clendon

NVU

Nanoveu surges 10% after benchmark testing for new AI chip begins

What's causing the cost-of-living crisis, and how to navigate it

SNX

Sierra Nevada raises $2M for silver exploration at Blackhawk