When you consider the capex budget is from the DFS dated Dec'21 and almost certainly based on pricing a few months earlier, I think they've done remarkably well to still be on budget (even though dipping into contingency cash) with 43% of the budget already committed & 80% of tenders out. We have also some stage 2 scope items brought forward into stage 1
Liontown put out their DFS at a similar time to us, the capex went from $473m to $545m with FID, to now $895m - admittedly allowing an extra 100kt of production.
Every time I read the financial news there is some mining company in Aust whose capex and/or opex has blown out.
Not so in Africa, no doubt we'll run a little over the initial budget, but nothing like what we've seen in Australia.
Importantly, our cash balance remains at $70.8m it only went down by $1m from last Q and we have $4.5m of development expenditure refundable to us by the JV.
LLL Price at posting:
64.8¢ Sentiment: Buy Disclosure: Held
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