I predict the PFS will reveal an improvement on opex, with a similar capex. My issue is the open pit and grades sub 0.8%. Those high grade pockets highlighted recently of 1.1% are great to see, but are sparring in comparison. The PFS will notably include the updated resource size. Logically, you'd expect they'd focus on the higher grades and those closer to the surface in order to reduce capex costs. They also seemed to have outlined their transport and gas issues for the production portion. This is undoubtedly a big step for AVL .... an OPEX closer towards $4/lb would be similar to that of the likes of Largo Resources. A CAPEX similar to that in the base-case is still incredibly reasonable when compared to neighbouring plays. You may ask yourself, well IF we can achieve this, then how come our MC is hammered? Why do we have no financing? I dare say we'd be well on our way there. Clearly not going to happen overnight. But I'd suspect we could potentially see some great string of announcements leading into the first quarter provided we get this PFS ticked. It's one of the major de-risking factors for any mine. I am nervous, but somewhat excited. For me, if they can achieve this. Well, id be quietly confident we will eventually get an offtake. Because realistically, why wouldn't we?! We'd be the next best deposit for V on the damn planet. As far as I'm aware anyways. Admittedly, $TNO has similar grades, however are further behind in their development and race to production. Lastly, the V price dropping is great. IF it stabilises around these levels, you'd expect it'd be easier to negotiate offtakes and financing. Not to mention the VRFB development which $AVL appear to pioneering ......... I've been so negative about this entire process, but after writing this .... Well, let's see what tomorrow brings. GLTAH.
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