I am in agreement with that type of CapEx to NPV figure, maybe slightly higher would be tops. ~$500mil capex with an NPV just shy of $1bil is a good ball park IMO. But obviously CapEx is a function of the NPV (being the initial outflow), and as we can generally assume/predict cashflows it leaves the only unknown being CapEx.
$500mil is a large amount of capital to come up with, I worry big CapEx figures like that stop projects from being funded (TNG comes to mind - different commodity though). Time will tell and I firmly believe we will be the most economical/viable to bring to mine, but it has really opened my eyes to how expensive cobalt projects are to get online.
CLA Price at posting:
9.7¢ Sentiment: None Disclosure: Held
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