On your numbers but taking a slightly higher cost case my guess is that the base case valuation is around 30 cents.
Then one considers the key variables controlling the base case:
The first being the quantum of REE - current exploration is disclosing other areas such as Gambit. There is a view that Wolverine is probably more constrained and of lower grade than current targets. It is probable that REE numbers will go up substantially as per your hopes for SIR.
The second is the the basket price for REE. It may go lower but at the heavy end it is more likely to increase.
Thirdly, the hydro treatment will increase the % return from the basket price.
I would consider the current MOU figure of 1,500 tonnes is JORC resource constrained and when the larger resource base is verified larger sales can be envisaged.
Certainly, a work in progress but then again how many others have an industry offtake - at these levels definitely a hold or maybe a light buy with prospects.
NTU Price at posting:
18.0¢ Sentiment: Hold Disclosure: Held
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