SYA - It just comes down to a financial decision, at some point its all about the following numbers
Capex $AUD 65m
EBITDA $AUD 38m
MC today $AUD 67m
LOM, 17 years, with payback 2.5 years. (deposit remains open in all directions)
And being Canada, infrastructure at hand.
So would a bank lend the finance on those terms of financial return, even if say half equity, half debt.
Given the directors history, i would punt on it.
As to stage two, building a hydroxide plant for another 300m capex, for a boost to NPV around $794m
If the plant is funded from stage 1, then bringing resources from neighbouring deposits to treat may add life of plant.
Thats not too shabby for the high degree certainty that Canada offers its mining history.
While BGS may offer bigger numbers according to the numbers on this forum, (i wait for the official numbers), the degree of certainty is a factor that stands between wishful thinking, and a modest return.
BGS Price at posting:
55.0¢ Sentiment: None Disclosure: Not Held
