why CYM is a Billion $ company in the making, page-3091

For example, many people expect a feasibility study accuracy to be +/- 10% but this is rarely achievable other than within the constrained boundary of the processing plant. Estimates for mining and infrastructure are much less reliable. It takes twice as much effort (and cost) to reach +/- 10% as it does to reach +/- 15%. It is also reported that the average capital overrun (over the last 50 years) was 26%, with no evidence that estimation accuracy has improved over that period despite the use of computers. The average overrun has been worse in recent years due to rapid cost escalation, but has probably now stabilized. There have been many studies over the years that reveal the generally poor performance of feasibility studies. Cost overruns sometimes occur because substantial owner’s costs are overlooked in the study. These include cost for the owner’s employees, financial fees, interest charges, insurances, and legal and consulting fees.

Nifty has had met issues in the past, and although new tech its likely there are still met issues that pose threats to the overall cost base. Things like:
- Metallurgical domains within the orebody not understood
- Testing is done on unrepresentative composites
- Failure to identify process contaminants
- Inability to handle ore types as per mining schedule
- Process water chemistry differs with lab

If you take this into account, the $12,000 AUD for copper price gives such a low IRR on such a high prediction and is unlikely that the copper prices will remain lofty through market cycles. Look below for the Copper price:


Give the risk profile of the company and the low IRR, insto's and corps aren't going to be flooding to CYM to offer them finance at 7-8% because its low risk. Its extremely risky and the companies need protection, this is likely very high interest rates or bond coupon rates which will eat into the already low-medium 37% IRR while not to mention the management team look like they're stuck in the ocean on a wooden door.