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clock Created with Sketch. 19/10/22
13:50
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Originally posted by m0ngy:
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This is a very conservative Scoping Study. This study covers 8 years but the starter mine will only operate in this form for a few years before there is a step change to much higher production and cash flow. T he early cash flow will repay Capex and be used to fund resource conversion to indicated and measured ozs.This study provides confidence to instos that the Capex can be repaid in 3 years . The Project is forecast to generate a healthy unleveraged and pre-tax NPV5% of approximately $303m and an unleveraged and pre-tax IRR of approximately 45%.
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NPV needs to be lower as RXL owns only 70% of the project Payback period of 3 years is too long. Needs to be no longer then 18 months. Risky for financiers AISC reported is ok. But cannot be trusted when miners are experienced massive increases to AISC Qtr on Qtr. Big Cap Raise coming to fund drilling for feasibility. Expect dilution of 20-25%. Should expect a discount with options attached. Overall, not a negative SS, but no a re-rate catalyst either SP won't move until POG can be sustained above $2800 which is where it needs to be NOW.
(20min delay)