The Youanmi Scoping Study is due this week ahead of the Diggers...

The Youanmi Scoping Study is due this week ahead of the Diggers and Dealers conference where it is likely to be showcased.
This will be the first economic assessment of the project, not the last or most important which are the Definitive and Bankable studies but of high significance nevertheless. Is the project economic? Is it attractive enough to attract finance? These are some of the questions the Study will address.
We will see costs that reflect the sky high inflation in the mining industry. Dewatering the main pit and rehabilitating the existing decline etc will be priced at least 30% higher than a year ago. But at least we will see real on the ground costs unlike those quoted elsewhere that need to be treated with a great deal of skepticism,
While Rox will provide data on the costs and cash flow of getting the Deeps into production with a Capex above $200m imo the main purpose of that model will be to inform the market of the riches to come from the Deeps in the future. Cornerstone investor Hawke's Point will be watching closely.
Rox will also be model the cheapest possible early restart and this is the one to watch out for,.
The challenge faced has not been how big the mine can be and how much PA in cash it can deliver but how small can it be to attract Capex.
Of course, Rox also has to repay the Capex finance to restart the mine.
The formula is a small enough Capex to get the finance for a mine that can generate enough free cash flow to meet repayment obligations in around 3 years.
A Capex of around $150m to mine the shallow oxide gold via pits starting with Grace and perhaps a short decline to the Link gold, with a free cash flow of $50m PA seems about right to me. That fits with Alex's ambition to start mine construction within a year.
With a market valuation of just $45m, which includes the very promising Fisher Gold project, a Scoping Study outlining a cheap and early pathway to production as described above should see a substantial re rerate of SP.