We should discount focussing on a mere 51c price, when what THR are saying is, they are now in the mining business and will soon be valued accordingly. Production, and a customer line up does wonders for these things
On a capital cost assumption of A$71 million and an operating cost per tonne of A$76, the project will generate an operating cash flow of A$116 million. Those numbers are based on a 400,000 tonne per year production rate and prices of US$32 per pound for molybdenum and US$240 per metric ton unit for tungsten, and factor in a 10 to 15 per cent discount for concentrate.
Molyhil has a mining reserve of 2.15 million tonnes grading 0.49% tungsten (WO3) and 0.22% molybdenum (MoS2), all of which can be accessed from an open pit. That figure was determined in August last year following an extended drill campaign which also increased the resource figure to 3.73 million tonnes at 0.51% combined tungsten and molybdenum.
Then added to the above, there is a sizeable uranium project in the Harts Range and at Bundey River not far from Molyhil.
THR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
