Study outcomes look excellent, IRR 73%, NPV8 $740m, NPV:Capex ratio 6.0. Very straightforward flowsheet with just crush, scrub, DMS, so flowsheet risk is low IMO. Also assumed $29m capex for green energy supply, which impacts the IRR and NPV:Capex, but these are still robust despite the use of green energy.
Key uncertainties in studies for these niche projects is market demand (Mn use in batteries means demand will remain robust as forecasted) and what product pricing is used. Can't comment on their pricing as I am not familiar with Mn, but as long as they haven't pulled a CHN and assumed double the current market price, then I can't see any red flags in this study? $10m market certainly looks cheap.
Interested in other's thoughts?
FRB Price at posting:
15.0¢ Sentiment: None Disclosure: Not Held
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