While the Cu grades are great I am very excited about the cobalt also. They sulphide/pyritic nature of the cobalt mineralisation should lend itself well to a roasting/SXEW project provided that they have the Cu/Co tonnes, which they are systematically proving up
I'd suggest to take a look at the scoping study done on the roaster project done in April last year. Keep in mind that this was done on previous resource and Co prices are significantly higher than they currently are. Capex is higher than the base case for Vardy but lower than HPAL plants that other ASX listed Ni/Co laterite projects are looking at.
Also worth noting that a large operating cost driver of SXEW and HPAL operations is sulphuric acid, with a roasting plant it removes that cost (not to mention power gen from the waste heat) and actually generates revenue as the excess acid is a salable product .
With the copper smelter at Mt Isa reaching its twilight years and the Phosphoric Acid plant at Isa not having a regular/long term source of sulphuric acid - the economics could get very interesting for the roaster.
AML Price at posting:
31.0¢ Sentiment: Buy Disclosure: Held
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