I agree that the PFS seems comprehensive and honest in what they...

I agree that the PFS seems comprehensive and honest in what they have included. However, it was what was not included that has me a little concerned.

Whilst I have only been investing in junior resources for a couple of years, so may not have the experience of others, what seemed to be missing from the PFS was the projects NPV. Most other PFS's that I've reviewed put up in big flashing lights the PFS at a discount rate of 9 or 10% (which is a rate of return that I generally think is too low for a start up mining company).

I did a rough (and I mean rough) NPV calc assuming $8.2M tpa, margin of $40 per tonne ($120 less $68 process cost less shipping say $12), I assumed no revenue for first two two years with 20 year life and got a present value of just over $2B, a bit less than the CAPEX of $2.3B. Therefore, if my rough calc is right, why invest to only get the present value of your money back over 20 years? Perhaps the chinese will still like it for grade and security of supply?

As per my previous posts, I was hopeful that the PFS would be been similar to Carpentaria's (CAP) but that doesn't seem to be so. If I get some time to do a more detailed comparison I will post, but my initial thoughts are CAP's Hawson project may be better placed with infrastructure and have a much better waste to ore ratio of 0.3:1.

(disclosure: position held via options)