Repost to clarify pricing used.
I’ve recently found the time to run some DCFs for the project which hashelped me get my head around how sensitive it is to the different variables.
Goes without saying I’m not a professional but have run the PFS numbers throughmy spreadsheet and get the same result. But run your own numbers to check.
For my expected case I have assumed:
- Quantities 2.65 x the PFS
- Today’s pricing for Nickel and Cobalt, other pricingas per DFS
- USD / AUD exchange rate as per DFS
- Discount rate 8% (as per PFS and several othercompanies I have looked at)
- Capex 0.75 x 2.65 x PFS to account for some economiesof scale
- For Opex
o 2.65 x PFS forlogistics and ore supply
o 0.75 x 2.65 x PFSfor ore processing plant to account for some economies of scale
o 0.75 x 2.65 x PFSfor sulphate refinery to account for some economies of scale
o HPA refinery as perPFS
For the sensitivity cases I have assumed:
- Capex 1.25 x expected case
- Opex 1.25 x expected case
- Production 0.75 x expected case
The above obviously doesn’t cover everything. Happy to run any othersuggestions.
I haven’t messed with the AUD/USD exchange rate keeping it as per PFS because that will bouncearound over life of project.
Repost to clarify pricing used. I’ve recently found the time to...
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