The long wait is over. 56 pages PFS with many numbers and future-oriented statements. The decisive statement is that the project will be continued. SVM is still the cheapest coming graphite producer worldwide. SVM goes directly into the DFS phase (among other things, I hope to get precise statements about the additional product Rutile).
In comparison to the SS we have partly different numbers. OPEX has increased by 68% to US$49m. The paypack time is extended by 50% to 3 years. At the same time the annual production increases by 18% to 52.000t. SVM still calculates very conservatively with a basket price of US$ 1216. The IRR of 56% underlines the world class project.
SVM must continue to deliver. Especially the statements about the advanced discussions with customers are to be evaluated positively. SVM is also planning production from 2021. SVM does not anticipate any problems with the approval of the mining licence.
I would have liked to have heard more about the costs of the RAP. How many people have to be resettled? Which costs are to be expected? I assume that these costs will be fixed when the ESIA is completed.
The share price did not rise or fall today. There was no sell on good news although the news was good.
Patience will pay off
SVM Price at posting:
8.6¢ Sentiment: Buy Disclosure: Held
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