CATL makes its entry via Lithium Plus Pty Ltd?, page-207

First 207 Last

Share
Profile

Follow
Roller62

1,643 Posts.

131

10/03/19

00:40

Post #: 37710637
Share

Originally posted by 8horse: ↑

I have done two scenarios:

Base parameters:

Royalties 3.5% DRC + 1% to partner, mining corporate rate 30%, depreciation 10% (Interest on financing the capex not included, need to be addressed), recovery rate 80%, AUD/USD 0.72, Capex: 2mtpa US$160m; 5mtpa US$400/t; 10mtpa US$800m, Dathomir meant to be responsible for power and road infrastructure fund (might be from a part of US$6b resource for infrastructure deal).

One with worse market cconditions:

using spodumene price of US$600/t, cash cost: 2mtpa: US$400/t , 5mtpa: US$360/t, 10mtpa: US$342/t

After tax NPV@10%, 60% share for AVZ for 20 years mine:

- 2mtpa: AUD$383m

- 5mtpa: AUD$992m

-10mtpa: AUD$2,153m

One with current market cconditions:

using spodumene price of US$760/t, cash cost: 2mtpa: US$355/t , 5mtpa: US$319.5/t, 10mtpa: US$303.5/t

After tax NPV@10%, 60% share for AVZ for 20 years mine:

- 2mtpa: AUD$808m

- 5mtpa: AUD$1,895m

-10mtpa: AUD$3,940m

In a worse scenario, at spodumene price of USD$600/t and cash cost of US$400/t, AVZ still would have AUD$383m after tax NPV. (best cash cost US$297 per the latest ASX announcement).

I don't think Manono project would have economic viability issues.

All imo & DYOR.

Expand

Thanks for that 8horse. Nice to confirm the project is still viable (not that I didn't think it was), even when using a lower spodumene price.

AVZ Price at posting: 4.4¢ Sentiment: Hold Disclosure: Held
4 Upvote

0 Great analysis

Reply

Top Stories

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Chaos reigns markets – so let's take stock of where we're at ahead of December

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

There are more pages in this discussion • 114 more messages in this thread...

First 207 Last

Add AVZ (ASX) to my watchlist

CATL makes its entry via Lithium Plus Pty Ltd?, page-207

Top Stories

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Chaos reigns markets – so let's take stock of where we're at ahead of December

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects