Looking forward to the updated BFS for Prieska. A lot (no longer pushing the 'big bang' build) has changed since the 2020 BFS but the fundamental impact of Cu/Zn price moves is unchanged I assume.
We currently have an approximate 30% lift in the assumed Cu price (US$6680/t) to the spot today of ~US$8520. Feeding that into the BFS sensitivity chart would result in a lift in NPV of a conservative 30%. Add in another 5% from forex moves, we could easily see the US$550M NPV lift to something closer to US$730M and a post-tax IRR above 40%?
Maybe offset to some extent by capex cost increases?
ORN Price at posting:
1.4¢ Sentiment: Buy Disclosure: Held
