I listened to the recording of the webinar, and it was another...

I listened to the recording of the webinar, and it was another good, realistic update from Kevin and Tony.

While the OC has moved a few months, there were a number of other important piece of information that will provide much more value.

1. Global supply and global demand are not aligned. I have been waiting for this project for 15 years and in that time only TWO successful tungsten mines have opened and stayed open (Vietnam and Spain). Some of the others nearing production are likely to have issues. Increased costs, high interest bills, recover rates can be very different in real world as opposed to the lab & availability of workers. Also, Tony added an important point. The ore sorters allows a low grade deposit to be mined profitably. Not all projects can use an ore sorter. I believe King Island can't as the scheelite material is different. Higher tungsten prices are likely to remain.
2. Better JV deal with Cronimet. Both sides have certainty and flexibility. We want to be able to mine the higher-grade ore, if it's appropriate rather than having a set rate of LGS. As Kevin said - cashflow of $5m per month is better than $300k.
That means the NPV can broken into LGS - Cronimet $26m & EQR $26m + EQR OC $79m
3. The increased resource in the current open pit to include the low-grade halo looks like increasing the mine life from 1.1m tonnes (2ish years) to 3.5mt (4-5 years) and higher amount of ore mined each year, 700k rather than 400k-500k from BFS. The cashflow each year looks to be $60m(ish) based on statement above.
4. We will receive an updated BFS2 that should an increased NPV. Based on higher price, lower strip ratio, more years and more tons. THIS REPRESENTS LESS THAN 14% OF THE KNOWN DEPOSIT. It could increase the value of EQR OC by the same again, $79m. Total NPV to say $210m
5. More drilling in surface of West Dyke. This is to finalise whether to extend pit or go underground. Tony thinks it will add the same size as the existing pit. 4 to 5 years? If it has similar grades, then BFS3 could add a further $160m to NPV (assuming all the above remain the same). NPV could increase to $370m?
6. Tony said this is a multi-generational deposit in the last webinar and reaffirmed this by saying, they will continue to upgrade the resource as we go along. There is not a shortage of drilling targets but they want to make sure that they have the cashflow and unfortunately the delay in the Govt grant may have set things back a couple of months. So, hopefully we might find the current BFS OC resource is only a small single figure of the KNOWN DEPOSIT.

In short it still indicates that the size of the resource is many times bigger than what we are looking at in the near term.