NextSource Materials - previously knowns as Energizer Resources - has released it's Updated Feasibility Study for the Molo Graphite Project - see link for full details. Note their comments about depressed graphite prices and also application of all-in CIF transportation costs. They suggest all other competing graphite companies , who have released PFS or FS, have included an all-in CIF transportation costs as part of their respective OPEX, which results in a higher NPV and Internal Rate of Return
pdated Phase 1 Feasibility Study Results Highlights(1)
Pre-Tax
Post-Tax
1
NPV at 8% Discount Rate
$34.0 M
$25.5 M
2
Internal Rate of Return (IRR)
25.2%
21.6%
3
Payback Period
4.2 years
4.8 years
4
Average annual graphite concentrate production
17,000 tonnes
5
Average production costs of graphite concentrate (at plant)
$432.92/ tonne
6
Average production costs of graphite concentrate (Delivered CIF Port of Rotterdam)
$688.43 / tonne
7
Weighted average selling price (in USD)
$1,014 / tonne
8
Direct CAPEX
$14.5 M
9
Indirect CAPEX
$0.4 M
10
Environmental and Permitting
$0.7 M
11
Owner's Costs
$1.1 M
12
Contingency (10%)
$1.7 M
13
Sub Total CAPEX
$18.4 M
14
Working Capital (3 months)
$3.1 M
15
Total CAPEX
$21.5 M
16
Projected build period
9 months
Column 1
Column 2
0
(1)
Unless otherwise noted, all monetary figures presented throughout this press release are expressed in US dollars (USD). The exchange rates used in the financial model are 12.85 South African Rand (ZAR) to US$1, moving in line with purchasing power parity.
1
(2)
Direct CAPEX includes process equipment, civil & infrastructure, mining, buildings, electrical infrastructure, project & construction services.
