we have a net present value currently at $28 million and that is ONLY on 35% of the molyhil package- the biggest problem and the crap that is doing the rounds here over the last few days is more so from people that had outrageous expectations that the DFS would be an overnight ticket for us on being onto the next FMG -
honestly think about it, we have a project that hs identified that $28 Million Net Present Value is the current figure from 35% of their tenement package. They have stated on how many times that once the dfs is done, then we can be in a position to see the offtake financing agreements to follow. Dont at all be surprised if the Chinese Company CITIC which we had a previous agreement with for finaning and offtake are quick to offer funding for Moyhil to come into production because unlike manyy here, they see the potential in the molyhil project and with the extra funding from a major, just imagining how much drilling can be expediated with more cash from a major supporting us to grow the molyhil reserves even greater - before anyone jumps down my throat for speculating to much, do your research first and come to realise that the only reason why CITIC didnt proceed with a preevious offtake and finance agreement was because of the deterioration in metal prices- not because of the economics of the molyhil deposit - Furthermore in balck and white the press release said that such negotiations will continue when prices of the two metal improve- and that it clearly has so dont be surprised if there is a memorandum of understanding coming our way -
assuming net present value of the project is $28M for 35% of the project- assume the other 65% value is added in the future on similar economics - that would assume a Net Present Value in the order of $46Million - however could be much higher as management have alreaddy alluded to the fact that they have identified ways to improve the mining life of Molyhil significantly and identified a large magnetic target below the known Molyhil resource and believe this may sustain a much longer term mining operation." so instead of being dissapointed on your own unrealistic expectations, look at the fundamentals -
and furthermore as a sidenote ( not having a go at fluffy at all) but someone before said that becuase fluffy said it was robably not viable that it wasn't - some might not be happy with mangement but id rather take it straight from the horses mouth then follow what people predict on hot copper as management unlike hot copper posters, have far for legal parameters and obligations to maintain when making such announcements to the asx unlike us posters on hot copper - "We are now approaching the development phase for Molyhil and pleased that the DFS has so clearly DEFINED THE ECONOMIC VIABILITY as well as the opportunity for an early payback on the capital required for its development,” said chairman Mick Billing.
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