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50.0¢ essential metals limited

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Jeffro1990

549 Posts.

149

02/04/23

12:16

Post #: 67089351
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Originally posted by Cusox: ↑

I have done back of envelope calculations on NPV for ESS using Scoping study numbers but making the following changes:
1. Spod price of Us$2500 instead of the low Us$1500 used
2. AISC cost of US$800
3. Discount rate of 8% instead of 10%
4. Upfront capital cost of $300m

I have come up with the NPV of about A$1.45bn (compared with the $135m offered under the scheme! What a rip off!) This is an attractive deal for the joint venture if it goes ahead. They can easliy fund the initial costs themselves. Even if they had to borrow 100%, the funding costs, say at 10%, would be minimal, given the project will pay off within 2 years.
Have already voted NO

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How much dilution have you accounted for? I would expect a large part, if not all of the development costs would need to come via equity raising rather than debt.

This has been shown to be the case for the current crop of developers.

ESS Price at posting: 49.0¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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