Hi Gazzah
Yeah 2-4B what its worth out the ground - that statement didn't include costs.
Some assumptions involved here too.
I have posted some of this before and I have gone one step further here and stated profit - This doesn't include the 90mil? costs we will need to raise and build a processing plant.
Mining and concentrating the
assume 1.25% ORE
Assume we get to a mining RESERVE of 10dmt (~30% bigger than CXO’s mining reserve) open pit and underground @ with a concentrate with the
stated 74% recovery of and produce a
5.6% Lithia concentrate 10mt @ 1.25% divide by 4.4 to concentrate to 5.6% and times by 74% recovery =
1,681,818 dmt of concentrate lithia @ 5.6%In CXO DFS - they have their costs of production
~ $360 US/dmt I believe.
For my calcs Im assuming
$500 US/dmt costsAlso remembering
PLS sold 8000t of 5.5% for ~$2300 US on their most recent BMX Auctions
sell for $US 1000USD/dmt Leaves $500USD profit X 1,681,818 = USD$841 mil ~
$ 1.14B AUDsell for $US 1500USD/dmt Leaves $1000USD profit X 1,681,818 = USD$1.68 B ~
$ 2.24B AUDsell for $US 20000USD/dmt Leaves $1500USD profit X 1,681,818 = USD$2.52 mil ~
$ 3.38B AUDsell for $US 2500USD/dmt Leaves $2000 USD profit X 1,681,818 = USD$3.36 mil ~
$ 4.52BAUDAs per CXO we could have a nice little 1mt per year operation producing up to 168,100 tons of 5.6% concentrate for 10years!
What price we get for it depends on the market of supply and demand -forecasts are for serious shortages
Just did the exercise for a bit of fun with some round figures.
Let me know if you think I'm way out, happy to see others valuations
