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Mr @ScarpaWhat are your assumption on why MLL management chose...

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tendoji

416 Posts.

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19/08/20

16:55

Post #: 46663548
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Originally posted by Scarpa: ↑

As a final point, you do realise how NPV and IRR work. At current prices, in nominal terms a number of greenfields projects can be marginally cash flow positive, possibly. But throw in the capex in a IRR model and its IRR impact, given the impact of upfront $200 million plus capex, will most likely be essentially well below the discount rate, meaning unviable. It is why spod prices need to be higher because it is a IRR model not a nominal model. I will make no comment around your costs given it is floatation, notwithstanding strip ratios and road costs until the DFS comes out. Looking at MLL market cap, all I will say if MLL was a dead set certainty for mining its market cap would be a lot higher than where it is now at less than $50 million market cap (noting you have done a PFS here btw). Same issue for AVZ as well, and the key matter is demand growth versus supply constraints to allow for new greenfield entrants.

All IMO

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Mr @ScarpaWhat are your assumption on why MLL management chose ‘full flotation’?

MLL Price at posting: 15.0¢ Sentiment: None Disclosure: Not Held
3 Upvote

0 Great analysis

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