What an appealing shower thought!
Dreams of the KNP gift that keeps on giving are made of just these stuff.
If your proposed Goongarie Hub scenario of a modest grade of 1g/T Au at USD2,349 /oz is the net-net-net-net figure after accounting for:
1. Resource to reserves conversion rate of, say, 70-80%.
2. Au processing recovery rate of, say, 85-90%.
3. EBITDA to revenue margin of 50%.
4. NPV7 over 40 years.
Then from points (3) and (4), your calc of $2.2B implies an annual EBITDA of: $800M x 2.2 / 4.98 = $353M.
Much as I hope for the same outcome, but the numbers seem far too optimistic?
How about underestimating but potentially overachieving?
$353M x 0.75 x 0.875 x 0.5 = $115M annual EBITDA.
That’s still an excellent bottomline.
Some Ni miners would be very happy to achieve that figure.
What an appealing shower thought!Dreams of the KNP gift that...
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