OK, so a very basic NPV using the following parameters;- No...

OK, so a very basic NPV using the following parameters;

- No production year 1
- 500ktpa production year 2
- 1.25mtpa production year 3
- 2mtpa production year 4 onwards
- mine life 23 years
- IO sale price $90p/t
- OPEX $41p/t
- Total CAPEX $231m
- Discount rate @ 12.5%

pre-tax project NPV = $450m

Obviously the above doesn't allow for a probable 10% Government stake or taxation. Still, it's a very encouraging figure, considering the end goal is really 5mtpa+.

What the above shows is that the project is very robust even at a maximum production of 2mtpa, although it would the stellar at 5mtpa.

If you thought an average price of $100p/t may be more likely due to the premium nature of the product, the NPV jumps to about $570m.