So this equates to $191 USD a tonne and Lochinvar holds 111 million tonnes (inferred) at an operating cost of $70 USd a tonne.... so roughly $13.4 billion profitUSD in inground resource!!!!! or $17.8 billion AUD!!!
Column 1
Column 2
Column 3
1
Construction Capital
US$ M
284
2
Life of Mine Capital
US$ M
593
Factoring these in and noting i'm not going to do any fancy ammortisation or discounting just back of an envelope.
13.4-0.284-.593 = 12.5 Billion USD/ LOM of 26 = 480 Million NPV.
Wow! even if the numbers are half this its still an absolute gem.
Now is there are market for coking coal and how does it look.
well the industry is moving to a spot pricing system as they feel they are being short changed on pricing and finding it difficult to negotiate contracts without a daily spot.... its now included in the LME price quote as above, but looking for a USD version. https://do not advertise external s...eaborne-buyers-boost-spot-price-exposure.html
BHP is positively giddy about coking coals future and suggests that not only is supply tight, Australia controls 60%. the increase in steal quality requirements within china and the production increases too have driven demand for coking coal. given that we only need the price to stay above $70 USD i'd say we'd be in the money for a while.
this is very very interesting. I think i'll start pinging gary on what the updates are on this project as it seems to be snffing around for a JV and that we are currently meant to be drilling there too....to be completed before june 18... haven't had an update on that.... maybe they took the money to redmoor and want a jv partner to fund lochinvar too.... all good. the last update is here http://nae.net.au/wp-content/uploads/2017/05/Lochinvar-2017-18-Exploration-Program.pdf
