Skattie11 - I don't agree with you that opex remains static when production rate goes up.
The driver for opex is US$/tonne. It is a unit opex. Assuming the model is a full blown DCF model (absolutely no reason why it would not be), total opex goes up if production volume goes up.
Ie. If annual production rate is sensitised to 125% (25ktpa) then annual opex increases accordingly (to 125%).
Capex on the other hand, I agree that it appears to be static. However, if we assume it takes additional capex of 25% to achieve a 25% increase in annual production rate, then we could apply the difference between NPV at 125% capex and NPV at 100% capex ($1,049m - $935m = $114m at 8% discount rate). The impact on NPV of a 25% increase in capex is much lower than the impact of a 25% increase in annual production.
One other point I would make is that the financing assumption used in the PEA is that the project is 100% equity financed. There is room for the discount rate (WACC) to be lower if debt financing is secured. No reason why this should not be achievable once the DFS is complete.
LPI Price at posting:
41.5¢ Sentiment: Buy Disclosure: Held
