Hi @semi retired the capital intensity graph pretty much explains it best...then we have the bottom graph with opex (Run of Mine cost)and cash margin produced per ton mined. Agree it is not so easy to understand the many variables only add to the complexity. For some, detail simply is not enough to grasp the concepts of what Walkabout Resource management team have put together building a mine designed for right size concepts with NPV values aligned with real market demand.@oznt in the past has readily made him self available and well worth reaching out to if you feel the need the to clarify why high grade from surface gives such an advantage from Flake size distribution,strip ratio's,through puts,lower capex ,lower ROM delivering the lowest required capital to capital intensity per ton mined.
Capital and capital Intensity
Opex and Cash Margin
What should be of note is Lindi is open in all directions with known high grade out crop's. The southern end was recently drilled as well while these numbers from the south have not been included in the updated DFS. This would have delivered higher NPV but management are focusing on debt finance with NPV values that align with real markets. There is expansion potential where the the plant can be easily modified to expand into known markets from a solid base.
With the lowest capital intensity per ton mined mitigates against start up risk being able to compete with any peer by margin and still make a profit. Price tension in case of over supply from a product limited in nature that differentiate to peers further confirm the resilience of this operation...DYOR
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