I'd suggest the maths quoted are wrong:"Below are the tons and...

I'd suggest the maths quoted are wrong:

"Below are the tons and math for the first 4 years. Mine life is 8 to 10 years. This only part of the CDB story.

Tons Price USD
Year 1 153000 $55.00 $8,415,000
189000 $55.00 $10,395,000

Year 2 306000 $55.00 $16,830,000
378000 $55.00 $20,790,000

Year 3 1020000 $55.00 $56,100,000
1260000 $55.00 $69,300,000

Year 4 1260000 $55.00 $69,300,000
1530000 $55.00 $84,150,000"

The total resource is quoted at 11Mt and metallurgical recovery at 12% (recent announcement). That gives a total contained saleable concentrate after processing of 1.32Mt. So using your figures and achieving the off take tonnage targets the project life is just under 3 years, because all the material would be processed to produce the required amounts for the off take. So they can't achieve the full off take tonnages as quoted after end of year 2, and year 4 won't exist (insufficient material). This is assuming they can produce at the rates required to meet those tonnage targets, which seems a stretch.

Next, maximum total revenue is 1.32Mt x $55USD or $72.6M USD, say $80M AUD. Since the company is talking about an "8-10" year mine life with annual revenues of circa $10M, lets assume an 8 year project with revenue of $10M AUD per annum - that's consistent with the resource, recovery and price quoted. This is achieved by processing an average over the 8 year period of 1.375Mt raw material for 165,000t concentrate. That's about 4,000t per day processed, which sounds achievable with a modest plant.

So, in my view, the maximum possible revenue of $80M spread over 8 years is both more realistic and much, much less than the $180M spread over 4 years in your earlier post which I have quoted above.

Bear in mind that this is a revenue figure only, and the estimated costs (capital and operating) are not publicly available that I can see - probably because the "resource" isn't JORC compliant. On the face of it you would expect this project to be profitable; how profitable is a matter for speculation. Good luck to all holders.