General Discussions, page-13968

I haven't modelled stage 2, but all other things equal (and I would expect price and cost assumptions to change in a revised DFS). If I recall previous financial studies were based on yields of 50% (recovery that is) and their revised 2021 METs increased that to in excess of 65%. So using this equation as a guide, all other things equal NPV for Stage 1 could increase to 65/50*A$713 million = A$927 million indicative NPV for Stage 1 alone. Just remember NPV is a different concept to EPS in production, where EPS is a nominal metric as against NPV been a discounted metric, which my post above (in an embedded post goes through that concept too).

Stage 2 is a doubling of production, but a key here is on an economies of scale basis would expect costs to come down per unit as well as your capex costs per unit. The latter a key, as expansions require less capex because you have already put in place some key fixed costly upfront capex so expansions become incremental capex only. So all other things equal, a doubling of NPV is plausible.

However, and to reiterate, this is just indicative but can understand where you are coming from. Ultimately though, we need to understand any revisions to capex and opex before speculating further as the previous financial studies were done a while ago. And we are also not clear whether they will maintain a conservative 50% recovery assumption in any revised feasibility study.

As well as the fact, my view is lets just get to Stage 1 before talking Stage 2.

All IMO