I will try Forestfield ,my area of knowledge in resources is limited I really prefer industrials , balance sheets , and cash flow businesses to invest in.
LRS in its presentations advised that Guado really was its flagship project , and so far have spent between $7-10 million getting to a JORC situation and proving up the numbers .
LRS did this so the company could seek the funding and assess a fair JV discussion .
A JV partner will need to spend around $100 million to get the project to a position of being able to produce andalusite, magnetite , some gold, some rare earth's from the 1.3 billion tonnes of resource at a 5.6% heavy metal content .
If you discount the gold and rare earth's income completely the value is in the 25% of the heavy metal being andalusite and 25% being Magnetite .
20 million tonnes per annum over 1.3 billion tonne resource will give an infinite mine life
20 million tonnes at 5.6% heavy metal is 1.12 million tonnes of heavy metals
25% is andalusite and is valued at $300 -450 per tonne
25% is Magnetite and is valued at $100-125 per tonne
Using 33% operating cost ( Peru is a low cost environment ) and receiving $300 and $100 per tonne price each 50% JV partner generates around $17 million per annum free cash flow per annum to each JV partner .
On that basis the opportunity to increase plant size and process tonnage per annum would increase and as such ...the calculator then blows up
Just my opinion
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