Australia's largest stock trading and investment forum Australia's #1 stock forum

Please post this on the SYA thread. Nothing to do with BGS.

First 105 Last

Share
Profile

Follow
52570

4,702 Posts.

508

21/06/18

13:48

Post #: 33857721
Share

Originally posted by stevenjd ↑

SYA - It just comes down to a financial decision, at some point its all about the following numbers

Capex $AUD 65m
EBITDA $AUD 38m
MC today $AUD 67m
LOM, 17 years, with payback 2.5 years. (deposit remains open in all directions)

And being Canada, infrastructure at hand.

So would a bank lend the finance on those terms of financial return, even if say half equity, half debt.

Given the directors history, i would punt on it.

As to stage two, building a hydroxide plant for another 300m capex, for a boost to NPV around $794m

If the plant is funded from stage 1, then bringing resources from neighbouring deposits to treat may add life of plant.

Thats not too shabby for the high degree certainty that Canada offers its mining history.

While BGS may offer bigger numbers according to the numbers on this forum, (i wait for the official numbers), the degree of certainty is a factor that stands between wishful thinking, and a modest return.

Expand

Please post this on the SYA thread. Nothing to do with BGS.

BGS Price at posting: 55.0¢ Sentiment: Buy Disclosure: Held
6 Upvote

Reply

Top Stories

STX

Strike Energy secures $153 million for Perth Basin gas projects

RDN

If you thought lithium was dead, think again. The Pilbara will be central to the next upswing

AML

Cultural heritage agreement puts Walford Creek exploration back on the map

With financials holding the fort, materials must step up with some heavy lifting to stimulate stocks

SBW

Shekel Brainweigh CEO Nir Leshem weighs in on AI adoption ahead of FY25

There are more pages in this discussion • 11 more messages in this thread...

First 105 Last