re: Ann: SUBSTANTIAL UPGRADE TO PANDA HILL RE... Hello Fellow Traders
been away on some R&R so havent had a chance to comment on the great announcement CXX made regarding the revised JORC.
I certainly was correct in my assessment the JORC would be a big improvement, what a revision 50% more Niobium metal and that is all contained within the existing ore body, they havent even had to extend the existing boundaries. This potentially gives rise to even larger deposits from any further exploration drilling programmes.
What does it all mean?
Well there is higher grades, better recovery and longer mine of life (additional 13 years assuming 2MT p.a. thoughput is unchanged) than the values used by Patersons in their report.
Using the NPV method of discounting cash flows to today and my interactive spreadsheet this all translates to an increase of NPV by 30% and nudges it to that $1B mark. This is based on a conservative discount rate of 12%, as this project progresses this discount rate typically moves to 8%.
I also believe that with this revised JORC and PEA to be completed in March 2014 with many aspects such as engineering being classified at a pre-feasbility level of detail, the probabiiity of this project turning into reality is now very high.
Good pickup in volume I noticed this week, sorry not me buying guys I have my fill and am very happy to sit back and watch my investment into 2014...
What might be next? well apart from futher met test work, I think what would really set this SP off is private equity firm interest. It is nearing XMAS so I am allowed to dream aren't I?
Disclaimer: I won CXX and CXXO and thank you all for your contributions
Cheers Dexter ;-)
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