CXO 1.10% 9.0¢ core lithium ltd

Mine setup capital expenses

  1. 66 Posts.
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    Long time lister, first time caller.
    Reading through the recent (12 July) resource upgrade, p68/69, there are capital expenses listed for the open pit and underground mine set up:
    • A further A$22.6m in pre-strip is estimated for Grants. (I’m unsure what portion of the original has been spent to date)
    • Hang Gong capital component is estimated at $45.4m.
    • Grants Underground Mining Capital costs: A$13.9 M
    • BP33 Underground Mining Capital costs: A$89.8 M
    • Carlton Underground Mining Capital costs: A$75.2 M

    The 2021 DFS capital expense costs were listed as:
    • Grants pre-strip A$33.9M
    • Hang Gong pre-strip: A$47M
    • Grants UG A$10.3M
    • BP33 UG A$4.7M
    • Carlton UG A$5.7M

    Quite a difference but perhaps I don't understand. Are the UG development costs covered in the All-in Sustaining Cost or do we need to fund these separately? The AISC breakdown in the DFS lists a US$41/t cost for "Sustaining & UG Development Capex" - what does this cover? Either way, the increase in costs is quite substantial. Any insight is greatly appreciated.
 
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