Interesting post by xulu: 'This is absolutely not what we were...

Interesting post by xulu:

'This is absolutely not what we were expecting at all, and the financials go directly against what Keith has repeatedly said as recently as a month ago. I feel quite mislead here on a number of points.

Important to remember it's still a highly economical mine. And if Keith had gone with a 40ktpa production and announced a $1.1Billion headline NPV maybe people would be happier - this is still very much on the cards.

We are only exploiting a tiny fraction of our deposit, and perhaps this can be scaled up significantly to meet the demand coming out of the European EV industry.

It's $540m NPV per 20ktpa.

The headline figure was post-tax too which is unusual and why it looks even lower than expected.

Again it should be noted, that this is marking us at 5X the current Cap. The other Lithium producers were sat at 80% of their NPV going into construction. This is only a year away for us.

Disappointing only because we were expecting something truly spectacular.

Take a step back - In the big picture, we will all make a lot of money on this going forward, even at the initial conservative production rate.'

Also it's important to remember that the costs in the PFS are based on mining just 34.5Mt, ie. 9.9% of our Indicated Resource or 5.2% of our Total Resource to date. This IS a multi billion dollar resource with an NPV to match and the cost of mining just 9.9% of it is therefore, imo, grossly disproportionate to the overall project value.