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3.57%

27.0¢ nzuri copper limited

Correct. Only need to compare the payback period. Whoever is...

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HAC30

5,127 Posts.

367

16/04/18

10:04

Post #: 32473987
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Originally posted by binwood ↑

In my opinion there are a few key differences of why ARL bombed on that assumption and why I don't think NZC will.

1. ARL only achieved an IRR of 25% using $90k/t Co price. That doesn't give them much wiggle room. NZC have a 76% IRR at $81k/t. i.e they have a lot of wiggle room.

2. ARL are using that pricing assumption over a 25 year LOM starting in 2023. i.e that is pie in the sky stuff. NZC are using their pricing assumption over an 8 year period starting in 2019. i.e they will be finished their projection period 4 years into ARL's 25 year LOM. Hardly as bold a call for prices to stay elevated to 2026 as it is for them to stay elevated to 2047.

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Correct. Only need to compare the payback period. Whoever is going to stump up that capex is going to get it back much, much faster.

NZC Price at posting: 35.0¢ Sentiment: Buy Disclosure: Held
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