Quick look at Prieska now. It's been a long time since the last BFS back in May 2020 and a lot has changed since then. Summary of BFS economics below - Capex was A$373M back then FYI
And here is the included sensitivity analysis;
And taking a look at the high impact variables that have changed over the past 5 years;
- Forex changes has ZAR:USD now at 18.42, compared to 11.1 at time of BFS. A ZAR weakening of >60% which (I think) is a massive net positive to the NPV - pure extrapolation here but conservatively >100% or adding A$550M
- Copper price has increased 36% to US$9150/tonne - lifting NPV hugely but conservatively >50% or adding $A280M
- Zinc price has increased 23% US$2880/tonne - lifting NPV by some 30% or adding A$180M
Assuming I have the forex adjustment in the right positive direction, then based just on the changes above and all other things being equal, we are looking at an NPV lift, adding an additional A$1B taking Prieska NPV from A$552M to north of A$1.5B.
Is this right?? Feels a bit over the top so please check....
Add to My Watchlist
What is My Watchlist?
