BML 4.35% 11.0¢ boab metals limited

The below spreadsheet shows Sandy Ck and Djibitgun as separate...

  1. 2,893 Posts.
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    The below spreadsheet shows Sandy Ck and Djibitgun as separate entities and I have also combined Sorby Hills with Sandy Creek for a more realistic possible future valuation for BML using the latest spot prices. Personally, I doubt that BML will have any valuation reflected for Manabarrum until such time that they announce that they are either going to commence drilling or that Sandy Creek is going to be developed.

    The Manabarrum's Djibitgun deposit is in my opinion uneconomical even when accounting for its 10.352M oz of silver. I suspect that the silver price would need to triple before anyone even contemplated developing and mining this deposit, especially when considering that it lies approximately 10km's from Sandy Creek which in itself lies 25km from Sorby Hills. It's a A$400M uneconomical asset. The silver equivalent metal value per MRE ton is 0.7oz per ton at today's spot price or less than 1/8th the value of the Sorby Hills ore, so including any resources from this deposit when valuing BML against its peers is a touch misleading.

    As a further example the value of the ore is A$3,000 per 100/t load which requires payback for mine development, digging and road transported 35km's to Sorby Hills. And then there is recovery % loss, process costs etc after that. Horribly, uneconomical.


    https://hotcopper.com.au/data/attachments/6129/6129257-1b0ba577c58696988b959a8c0681652e.jpg

 
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