G'day Moly Oly0.4% moly is awesome grade. However, HDG have...

G'day Moly Oly

0.4% moly is awesome grade.

However, HDG have 0.04% or 400ppm.

100ppm = 0.01%

Compare to QOL, who have 0.4% tungtsen & 0.2% moly (and they had to cease operations).

MOL have 0.04%

IVA have 0.8% molybdenum, and 14 g/t rhenium,
0.2% copper and 4.8 g/t silver.

But the HDG resource is large and low cost.

MOL forecast cash Operating cost (net) US$6.92/lb

MOL has 10 year pit for 200MT of 1.3 kms x 1.1kms x 400m deep.

HDG area with higher grades 200ppm+ looks like 550m x 325m x 200m deep = 12.5MT tonnes @ 0.04% x 92% recovery rate = revenue value @ US$10lb of US$101M

At US$30 lb, revenue value = US$303M

At US$20 lb, revenue value = US$202M

Taking middle case of US$20lb

Costs = US$81M

NPAT = US$79M or AUS$93 for project life

CAPEX = AUS$53M

Return = AUS$40M

I am just playing around but it looks hopeless.

At US$30 lb, return on AUS$53M capex = AUS$106M

Break even = US$16 lb moly

I am just playing around but it still looks hopeless.