@JSSF,
@Ninefingers &
@Peps01, you might have missed a step in your excitement!
From the PEPR approval:
So, in the original study, at half the PEPR raw ore approval quantity, 60 of the 78kt of concentrates produced were to be processed to PSG (perhaps that is what will be suitable, the remainder to other flake applications) - lets call it 75%.
The original study had a 50% yield when processing the concentrate to PSG, for 28kt of PSG - see 10-Jan-2022 ASX Commercial-Scale Milling Trials Deliver Increased Yields announcement.
The 60 to 28 is not quite 50%, not sure how they worked out those numbers.
The concentrate to PSG yield now sits around 65%, as per the 10-Jan-2022 announcement.
So if we double the 60 to 120 as raw input, and multiply that by 0.65, you get 78kt PSG.
I reckon that may be best case, let's say 75K PSG could be produced under the new study and current PERP approval.
Let's assume the original study's numbers have improved since given the graphite shortage theme:
Being very conservative, perhaps the shortage merely fully accounts for OPEX increases in a higher inflation world (that's good, BTW)
So let's say we clear $2.5K/t (the PSG sales price minus the op cost with by-product credit).
That would equate roughly to $187.5M USD/yr of profit (not earnings) just from PSG, let alone the remainder of the product.
At current USD:AUD exchange that's 266M AUD, let's keep being prudent and round to $250M AUD profit/yr.
I'll leave you to work out your MC from there...still very tasty on my napkin
