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UndR8ed Cat

1,984 Posts.

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21/02/24

12:25

Post #: 72513939
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Originally posted by cmonaussie: ↑

I'll tell you what else it is @UndR8ed Cat .... Capital Intensity and disbelief in the recovery % given the flow sheet.

and to your point @Norbeto ... the "other entrants" are quite a few really. But the one you guys hate (no not PLL CLP with its permitting challenges that most like to point out ... now what's that about the maturity of the MoM boys) that really shows the difference is Ewoyaa ... and up front "permitting challenges", Sovereign Risk (this is not Mali, or DRC or Zimbabwe) etc etc. But on DFS financials and mine metrics it "crushes" Moblan so to speak (except mine life (addressed by infill drilling to get further M&I and Probable Reserves) ...and strip ratio). Ewoyaa SC to USA is less than or equal to transport of Moblan SC to market ... of course one can always build a refinery next door (in both instances).

This is why one should look to "incentive price" and not breakeven ... you have to both earn a return on the capital invested AND get your capital paid back. The Capex is high (doesn't matter that SYA is only 60% ... the DFS speaks to the project) and for the output produced the Capital Intensity is high.

Moblan remains a good project - definitely in Tier 1 zone - but it is far from "the best" (which is subjective) because when you look at it through a risk adjusted lens that changes things (the example of discount rate used is spot on from a sensitivity point of view).

Everyone will have their opinion. Read, Relate, Reject/Accept

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I did look at that recovery rate - but if we can hit 67% recovery at NAL (currently 62%) with in input grade as low as NAL's then the 1.36% at Moblan, using a similar system may be able to hit them goals.
By the time we reach a lithium prices stated in the DFS we may have the technological advancements and an actual concentrator at Moblan that may hit 74%
Im sure Sylvain would have had to sign off on that.

SYA Price at posting: 5.5¢ Sentiment: Buy Disclosure: Held
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