Doing some very rough numbers (prob have more holes that swiss cheese)!!
Trying my best to get my head around economics of the project
As we know from the last presentation the weighted price of the resources is A$3,746oz but of course very close to the third is Base metals Ni/Cu/CO so 66% is the PGM5 ... I work that price out at $2498oz .. (using the last pres numbers)
Now using the grading from the resource 147MT ~ 6Moz PGM5 ...
and doing a 3mtpa Conventional crush and mill production rate less 20% recoverable hydro loss = 100Koz PGM5 in concentrate =(gross A$249mill)
but of course the PGM need to be refined after the hydromet + solvent to extract a high grade concentrate that going from S.R believes we could see 10-20% percent PGM5 per ton of concentrate
So. end product a PGM refinery feed ~ bypass smelting($$$$$$)
Now what kind of $$$$ POD would get for the high grade PGM5 concentrate and costs to get it to the refinery's
One can see a pretty complex road POD must go down ...unlike other mining operations like GOLD ..
And why we are being valued at present levels until more details on just how POD will progress from here ,,,
We of course need the inferred to be upgraded into indicated(plus deeper drilling is going be a large CAPEX needs large indicated resources)
we really need a Refinery thats hungry for PGM5 concentrate to get involved maybe through a cornerstone investment + MOU
what kind of processing costs could we be looking at > Mining open-pit + underground -- large Conventional crush and mill + HYdromet leach...
As we know early days for POD ... but I do believe we are still. very early days in a MAJOR resources Bull market ..PGMs will play a part and be once again valued near the top in the space per oz
POD Price at posting:
7.2¢ Sentiment: Buy Disclosure: Held
