SYA C1 costs are 327/t usd.
Bgs C1 costs looking to be 285/t usd.
Note you are quoting mine gate costs for SYA, that is why you have made an error in your comparison. Bgs will definitely have a lower operating cost.
SYA jorc 20mt. At 1% grade.
Bgs jorc 65Mt. At 1.5% grade.
SYA planning to produce 90ktpa.
BGS planning to produce 360ktpa.
Note that SYA cannot expand further as they have decided on a small plant to avoid needing environmental permits.
Bgs also receiving gold royalties, worth several million usd on top of their lithium deposit.
You can see how small SYA will be by looking at their npv in the PFS. 220m aud pre tax at and 8% discount is very light. Other lithium companies use 10% discount in their valuations. Using an 8% discount bgs would have a comparable npv about 4-5x higher.
Will be doing an in-depth analysis/comparison of bgs once pfs released, but basically bgs is 4x as big, looking to produce 4x as much product, at a far lower cost. And it is earning gold royalties on top conservatively valued around 5million.
Canada is a great mining jurisdiction though. But bgs will earn about 3-4x the profit.
Bgs severely undervalued imo, SYA should also move up but lower overall potential as demonstrated above.
DYOR.
BGS Price at posting:
49.5¢ Sentiment: Buy Disclosure: Held
