Thanks Phogg. I did find the relevant slide and can confirm Life Of Mine, FOB cash costs to be $65 per tonne for Springsure Creek. As a comparison I read a Stanmore (SMR) preso and discovered that they claim $71 per tonne Life Of Mine, FOB cash costs for The Range project. Both companies say that their costs compare well to the cost curve of planned new mines in Australia and overseas, but without actually showing us the cost curve!!
Back when this preso was shown, the NPV for Springsure was $840m for $1.1 bn capital to mine 11 mtpa (in two stages). I guess the NPV is hugely dependant on some long run forecasts for the thermal coal price, of course not the current spot price. I wonder what the DFS due in Sept will determine the NPV to be? In the end it will come down to what a particular group of end users, ie. power stations, think about these calculations.
Using my mighty maths powers (LOL) I think the DFS will come up with roughly the same numbers as before and the project will not be delayed. Anyway, let's hope the power stations of Asia still like business trips to Australia.
BND Price at posting:
30.5¢ Sentiment: Buy Disclosure: Held
