This is the extract that you referring to:
- SRK prepared a simplified, real-term, post-tax, pre-finance cash
flow modelto testthe economic viability ofthe WolfsbergProject,
based on the production schedules, operating cost, and capital
cost as presented in the FS report. SRK notes that the effective
date of the Ore Reserve statement is 1 July 2022, with operating
costs and capital expenditure in money terms at that time. The
LHM sales price applied is that as resulting from the December
2022 forecast, incorporating the BMW offtake agreement (using
the US CPI to de-escalate in SRK’s test model, this results in a
real LOM average price of approximately US$49,000/t). The
project returns positive cashflows, and NPV, with a healthy IRR.
- The LOM average unit costs (real terms) per tonne of LHM
produced are approximately US$17,000/t, with the main cost
contributors being the hydrometallurgical plant (31%), mine
including backfill (26%), concentrator plant (19%), and product
freight (14%).
- The project is reliant on the disposal of all the by-products from
the mine (amphibolite) and plants; however, no offtake
agreements are currently in place. No revenue or freight costs
for the amphibolite material have been allowed for.
It is a bit opaque as it doesn't reference any pricing agreements with BMW. As far as I know the agreement between BMW and EUR is based on market rates + ~5-10% discount. So effectively my understanding is that the offtake is tracking spot + discount. Valid question though and great reference to the study.
