A DFS for McPhillamy's is contingent on the development process and approvals. Likely the development will come with conditions that impose extra capex on the project (particularly around water usage).
A rise in capex has been flagged for McPhillamy's in almost every conference call for 2 years. The last number I recall was solidly in the 400 millions. In theory the market should be well conditioned to that increase but I think it might still come as a shock when it arrives (assuming they actually get development approval).
Perhaps more important will be the opex costs. The 2017 PFS had a life of mine AISC of $990/oz which could increase substantially. I feel like the market hasn't really been conditioned to an increase there and it might come as a shock if AISC is say A$1300/oz.
RRL Price at posting:
$1.98 Sentiment: Hold Disclosure: Not Held
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