so many red flags. this project really is a piece of rubbish. at...

so many red flags. this project really is a piece of rubbish. at least they've documented it now. here's the red flags:

npv @ 8% is always a giveaway. it gives more weight to the real value further out in time and is a sneaky way of boosting NPV and IRR. 8% is not enough discount for this level of investment risk.
irr of 14% is really not good enough, even using 8%
cash cost is now up to US1.61 and is expensive. this includes gold credits, so the gross margins are really not that great.
exchange rate of 0.7 is too agressive. if our dollar is there, then the price of commodities will also be low. this is another project tweak in my opinion.

the only good thing i see is that they've ditched that magnetite idea and therefore saved all that effort with the pipeline and port upgrade. good move.

no-one will invest in this project.