Biggest difference is that Baz's study had a 'trust me...

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magmabaron

619 Posts.

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23/05/24

15:13

Post #: 73977552
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Originally posted by tinhat: ↑

I'll have to spend some time reading through to compare and contrast the two studies (the '22 Nifty restart study and this scoping study) as they are chalk and cheese.

The first thing that sticks out is the one thing these two studies have in common. They both use approximately the same US$ denominated copper price of about $4.08/lb. The '22 study used a USD/AUD exchange rate of 0.75 while the current study uses 0.69.

22 Nifty Restart Study (Oxide ore & existing heap leach retreat SX-EW cathode production)

NPV(7%) $277M. IRR after tax 37%.
CAPEX $149 (excludes operating capital).
Annual production 25kt copper cathode

The '22 restart study was all about the oxides and heap leaching the transitional ore. Total revenue from the existing heap leach was forecast to be $927M while open cut mining was only going to generate $825M in total revenue over six years with a three year payback period on the entire project.

It stated the mineral resource as being 135.5kt of oxide @1.1% and 596.7kt sulphide @1.8%.

Open cut (excluding pre-mined heap leach retreat) recovered 68.8Kt of copper over six years. Adding in copper from the retreated stacked ore, with annual production through SX-EW at name plate capacity of 25kt copper plate (cathode).

The study stated "the sulphide project will extend the mine life substantial as either a sulphide heap leach operation ora concentrator operation. These studies have commenced and are currently in a design optimisationand metallurgical test work phase".

'24 Sulphide Concentrate Scoping Study

NPV(8%) $880. IRR 46%.
Annual production 36kt contained copper in concentrate.

The '24 study uses the March 24 Mineral resource of 162kt of copper in oxide ore @ 0.78% and 876kt copper in sulphide ore @0.84%. Oxide ore is not treated in the study and is modeled as waste. It seems obvious that a separate plan to treat it will come later. The study models processing of 570,000 contained copper in concentrate over sixteen years at an annual production rate of 36kt contained copper.

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Biggest difference is that Baz's study had a 'trust me bro' approach to the sulphides. His capex numbers didn't go into the concentrator. The two studies can hardly be compared.

CYM Price at posting: 4.1¢ Sentiment: Hold Disclosure: Held
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