I will have a look at it myself to confirm those facts and figures from MGT.
From what you provided, it seems to confirm my long-held belief that HAWSONS project is more superior than Razorback project.
AUD: USD = 0.70: would add more weight to NPV. I did highlight this point before. If the long term AVERAGE exchange rate to be 0.70 as has been seen for a few years before the Covid, then NPV in AUD will be 7% higher.
Capital expense of $1.4 bil (possibly updated to $1.7bil in the BFS): not a problem. It only reflects the scale of the project. A good and big project needs large CAPEX. Debt to equity ratio is 2:1 as highlighted in PFS means the company will need around $500mil-$600mil which can be essentially funded by off-take partners. The company will only need to raise a small amount which is not a big deal given it is the best undeveloped IO project in the world and has the support of the Australian Government and the NSW government.
NPV with 8% discount: again confirm what I pointed out before and help validates my NPV calculation.
Price assumption of CFR 62%Fe = USD $110/ton: very much in the same ballpark with my expectation.
All in all, it shows HAWSONS project is more superior than Razorback and most of other metrics are in line with what I expected. Exchange rate of 0.70 adds a bit more juice to the cake for my NPV calculation, an 7% improvement.
Wow, this makes me even more confident CAP will touch $500mil MC before MGT.
CAP Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
