It is also very interesting to look back at the DFS, to see how much cost overrun has happened during the mine development.
As of DFS in 2016, CAPEX was estimated to be 129M to develop this mine.
Fast forward to end of 2018
281M mine development cost, this is excluding 23M of sales during commissioning period, so total cost is more likely around 300M.
To me this is not a necessarily a bad news for AJM, what was spent has already been spent and we all know about it. It just shows how difficult it is to develop a producing mine.
This is bad news for the early stage explorers. The barrier for entry is there, and it's likely much higher than what is usually presented on the PPT.
Ann: SPP Offer Further Increased to $14 Million, page-138
-
- There are more pages in this discussion • 27 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
