The ASX doesn't audit the assumptions in scoping studies, please, its buyer beware. That garnet price is retail for retail quantities. Another 150ktpa (>10%) quality hard rock garnet is about to hit the market next year as Nordic Mining's Engebo mine development is completed. First 5 years sales locked into off-take contracts with 3 major importers/retailers who will mark-up and distribute the garnet... Nordic will sell no garnet retail, they have no distribution channel.
This from page 48 of their 2021 DFS, worth looking up the section on garnet market. Demonstrably they are selling wholesale volumes at wholesale prices, in their case the price assumption to get the project funded (ie still profitable) was US$230/t FOB long-term (2021 real). Below that is their commentary on the garnet market 1st Qtr 2023.... slow going and the downturn hasn;t started yet. Just as well they locked in price and volume yeah.
I can explain it for you, but sorry, i can't understand it for you.
GLTAH
The ASX doesn't audit the assumptions in scoping studies,...
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