Yes you said it mate! I think all shareholders are on the same page..
Based on a Lead and Zn price of US$2,286 & US$2,417 as per 28/07/14 and assuming Border earns $83.4 mil gross profit per annum for 10 years (including ore from Dreihok South and Central) as per my previous post.
I calculate the NPV of production at Border/Dreihok is around $270mil, based on the following assumptions;
- IRR of 20%
- 10 year production of 2mtpa
- Cash inflows (gross profits) are consistent throughout the 10 year production
- $80 mil initial infrastructure spend.
...happy to hear other peoples thoughts, especially the $80mil infrastructure spend..as this figure is purely my speculation and was not based on anything SBR has mentioned to me!...
My understanding is that if SBR want to pursue a modular/staged approach to development of Border, they may want to acquire DMS infrastructure, and dig up and beneficiate the ore and sell the upgraded ore to a processor with existing grind and float infrastructure in place..
The beneficiated ore SBR may achieve is 6.3% Lead and 12.5% Zinc (18.8% combined Lead/Zinc) per announcements on Jan 2012...
It would be great if SBR can fill in the gaps and provide guidance to the market on border so there is no need for speculation...
Sutto
SBR Price at posting:
3.8¢ Sentiment: Buy Disclosure: Held
