molyhill capital costs

The latest THR presentation on Molyhill development is disappointing. There is little wonder that the share price continues to languish when the project cost estimate shows that Project Engineering and Management costs total $13.6M (18.7%) for a detailed design and construction period of one year. With village accommodation and pre production adding a further $7.7M these ancilliary costs represent 30% of the total budget! Surely these are not in line with industry norms and should be significantly reduced. The reason Thor has performed so poorly is the pathetic NPV ($23M) from the "as good as it gets" DFS. Squandering 30% of the project capex on consultants and advisors will do little to lift NPV and stimulate significant value growth. The prospective returns simply do not support investment. Springhill is a short term "side show" adding little if any NPV. Avoid.