Here are some of the Stage 1 DFS outputs which aren't even close now. I suppose it's a good lesson for all that DFS's (including me) aren't worth the paper they are written on in many cases. DLE project fans beware.
This statement below is the clanger for me and the 50% recovery now with more fines than anticipated make you wonder about the metallurgy test work samples. So basically, approx' 68% of what they expected to recover. The mine metrics are basically out the door and it is now a high cost producer that won't come online again unless the spod price is much higher.
At 50% recovery, the 280kt on the ROM pad translates to approx' 37.5kt of SC5.2 (SC5.2 was their latest quarter production) which at $1000 US for SC6 equates to about AUD $50M. Their unit operating cost A$t for the latest quarter was $1889, which included more stripping costs for wet season stockpiling. It will be less without the mining etc but the income for the next 6 months is chicken feed and the wet season ROM build is now for survival mode.
High-grade Ore Reserves with an average grade of 1.31% Li2O, combined with exceptional spodumene metallurgy, will enable Core to produce high quality, coarse concentrate using gravity only Dense Media Separation (DMS) processing. The construction of a simple 1Mtpa DMS
processing plant will enable Core to produce up to 197,000 tonnes of high-quality concentrate per annum over an 8-year LOM.
The subvertical shape of the deposits and excellent ground conditions at Grants, BP33 and Carlton, allowed sublevel open stoping to be selected as the mining method to provide a lower cost and lower risk method than other underground mining methods.It appears this all turned to shite when the Grant pit flooded and the pit walls became unstable. They are going underground at BP33 first apparently which wasn't the original plan in the DFS so costs for BP33 development brought forward.
Apologies CXO fans but the facts are what they are. Hopefully they survive. You would think the NT government will let them off royalties for now and customers may throw them a bone.
PLS on the other hand have a better resource and a plant with kinks ironed out so the future looks bright.
FIBO, BMI, if you are reading this, please adjust spreadsheets to account for a possible shortfall of 197kt of Spod and a supply excess now back in balance. Maybe start looking at other marginal resources and getting real with your forecasts. Unless of course the price of Lithium is expected to be much higher. It's one or the other. Higher price, higher supply or lower price, less supply. Can't have it both ways.
(20min delay)