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I refer dear readers to JORC, Clause 29. No (pre) feasibility...

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jezzathegeo

540 Posts.

130

07/01/16

20:34

Post #: 16751847
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Originally posted by ozblue ↑

In theory we are waiting for someone to do a feasibility study to show the supposed economics of the project before the prospectus is issued.

It will be interesting to see the economics involved, and how they differ from those issued by KGL for their Jervois project in NT.

The KGL capital raising is using the 'robust economics ' of the pre-feasibility study as it's basis.
Their PFS, has C1 costs of 88c/lb after by product credits, which are 1m oz Ag/yr, plus zinc and lead credits. C3 costs are $US2.13/lb. They use an average price for Cu of $US3.25/lb. Very interesting with the current $US copper price of $US2.09 or thereabouts.

They can get away with this because they are basing it on mining starting in 2018.

CDU cannot use such an assumption. They are going to be mining and processing the highest grade ore first, so we should assume 2016. The only price of copper sales that make any sense are current prices $US2.09, for the short term future when the bulk of the highest grade ore will be used.

The numbers are going to be fascinating, but I will bet my last dollar, they can find someone, that is an 'expert' in the field to come up with some numbers showing 'profit'.

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I refer dear readers to JORC, Clause 29. No (pre) feasibility study (as defined by Clauses 40ff), no Reserve (as defined by Clauses 29ff) Bain't see no (P)FS.

CDU Price at posting: $1.11 Sentiment: Sell Disclosure: Not Held
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