Capital Intensity - The investment it takes to generate income.
The CAPEX will undoubtedly be higher on the premise that the per annum production is identical I.e. 500ktpa vs 500ktpa, because Wildcat will need a flotation circuit and Latin/PLS will be using DMS and of course, materials, labour and royalty/taxation rates of Australia vs Brazil.
Discussion past this point looking at infrastructure, strip ratios will all depend on mine plans, strategic partners etc. It's a good piece of opportunistic buying from PLS. Even at these prices I think you'll see the DFS come out with about a 30% IRR and sub 5yr payback period.
WC8 Price at posting:
28.5¢ Sentiment: Hold Disclosure: Not Held
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