Given previous analysis provided CAPEX only based on provided...

Given previous analysis provided CAPEX only based on provided simplistic mineral processing cost from AW1 (excluding mining / infrastructure), I will now assume CAPEX for mining and infrastructure ranging from $100 m to $500 million to address the costs associated with power generation, village, trucks, diggers, graders, utility equipment, drill & blast rigs, etc.

Key Observations:

1. Cyclone Deposit:

   • Profit per tonne of ore treated decreases as CAPEX increases, ranging from $33.4/tonne (at $100M CAPEX) to $10.3/tonne (at $500M CAPEX).
   • Cyclone's margin shrinks faster under higher CAPEX due to slightly lower recovery rates and smaller production scale when treating at 1.5 Mtpa rates.

2. Chinook Deposit:

   • Higher copper recovery and production rates result in stronger profit per tonne, ranging from $41.0/tonne to $22.6/tonne, even under higher CAPEX assumptions.
   • Chinook remains more profitable across all CAPEX scenarios.

3. Impact of CAPEX:

   • The addition of CAPEX significantly impacts profitability per tonne, emphasizing the importance of careful cost management and efficient CAPEX allocation.

4. Operational Implications:

   • At higher CAPEX levels, maintaining robust copper pricing, long term sales contracts and efficient operations will be critical for both deposits to remain economically competitive.

This format highlights the economic sensitivity of the project to CAPEX adjustments and provides clarity on the economic viability of each deposit under varying scenarios. It will be interesting what AW1 develop for their PEA/PFS studies.