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That does make me laugh... by definition Bushranger is a much .... much .... much bigger cash drain than anything in Africa.... and is unlikely to give us ANY cashflow in the next 6 months. But thats the exploration game.
I would go so far as to say..... when the money from the last raise runs out at the end of this drilling campaign and we are looking to get Bushranger over the line, it will be African revenue that prevents our current investment from being unnecessarily diluted.
Thats more than just my opinion...... Empress are also expecting African revenues to begin rolling by year end. GLA
Not too sure there's much of a cash drain from African assets? Company makes a small loss but not significant and much less then cost of drilling. By end of the year the African assets will be producing at least £300K a month profit.
That said, even at current loss due to African assets, the investment case here is excellent and yesterdays news reinforced that .
Also one factor I have seen in economic studies is a measure of time to start returning on investment. If this is a metric that the majors care about is supports icebergs view of maintaining a higher throughout I guess ?
This is how I understand it, as the Lachlan star CAPEX was based on a much lower throughput. Also yesterday's RNS stated opportunities exist to lower throughput and increase mineralisation to improve economics, I assume this is to allow for a smaller concentrator to be used however I don't know how proportionate throughput to cost of infrastructure is?
I think iceberg mused that keeping throughput but just significantly increasing LOM by finding more mineralisation would have a similar effect. Not sure of pros Vs cons here ?
Hi Ella, I went back to the 'positive' lachlan star scoping study and the only mention of CAPEX was the following
The net operating cash flows are on a pre-capital cost basis, with the capital cost estimate for a 2Mtpa concentrator and associated infrastructure being A$98 million.
The capital costs for the concentrator and infrastructure were estimated from a database of similar projects and recent construction of projects in eastern Australia and are considered to be accurate to a +/-30% level.
So increase 30 percent to their max and then 10 years of inflation, say another 20 percent. Still a long way off our CAPEX estimate.
I read on the other XTR forum that the open pit would pay for the underground relating to what was conveyed in the podcast today. That would then explain for the discussion earlier on the cost. Xeiger below my post mentioned about financial model modelled as waste.
I haven't had a chance to watch the podcast yet. For the uneducated could someone clarify what all counts as Capex? TO me CAPEX appears very high in the RNS. The following Shard note gives the Capex for Sandfire and Khoemacau in Botswana. I realise we are talking totally different countries and totally different grades - what else means a higher Capex will be required? https://galileoresources.com/wp-content/uploads/Shard-Capital-Galileo-12-7-2021-R.pdf
I went back through the podcast on the 40 inch TV rather than phone and I noticed a couple more points Couple new holes within existing resource look like they share the same drill pad, maybe 45 degrees each side of vertical ? Testing 3.6km of strike length ! 5 or 6 holes into the south east anomalies One hole into the south west anomaly Confident can extend into anomaly at North West Eastern centre of open pit doesn't have many historic holes and looking to drill into anomaly there. Free kick for financial model as it's modelled as waste. Enormous potential and is going to get substantially bigger. Well past discovery phase, open pit is nearly pre feasibility study model, sophisticated financial model, to upgrade based on new resource. Stripping ratio 4.3 to 1? Very acceptable for 650 metre deep pit, really works for us. Colin thanks Zak for the opportunity and goodnight !
Great Podcast from the team at XTR - this is becoming the bargain of the century.Gone way beyond my A Level geology and loving it ! Happy to have and hold a good position here and when the big buyout arrives will be looking to reinvest in a large Fendt tractor for the farm !! GLA
Good to see that the whole 8,000m , 13 hole, first phase of drilling is focused exclusively on proving-up, and finding extensions to, Racecourse. Nice to see that we are keeping an eye on the ball for a change.
Finally had a chance to listen and watch the podcast. Sex plenty as others have said. I can't remember a company giving quite as much information as this prior a drill campaign and not in a PFS or DFS.not Fantastic!
Impressive. (With this and certain Africa assets all warming up very nicely, years of CB p+ss extraction may soon enough be replaced by years of CB significent metals extraction from sundry Global 'oles, which should do wonders for the long suffering shareholders wealth as we go)
Excellent Podcast done by the quality team. Most of AIM RNS would use words like Bonanza Grade, Attractive IRR etc etc ..investors are not given too much details. I really like the presentation and the IP co-relation . Yes, its a risk but ready to take it as it is explained by science rather than superlatives in the RNS.
It also helped explain the rationale for the drilling starting in the clearing, there are some gaps in the historic drilling that means the current study has to treat as waste material, if I heard correctly ? Easily bankable I believe they said.
Hi Caveat, if as some have suggested there is something of a CB effect going on here / adding to reluctance from the market, the guys in OZ come across excellent in the podcasts and their CVs are very impressive. They are the team on the ground making the day to day decisions and surely it's only a matter of time before realization.
There is a lot to play for here, much more than I realised, and the presentation was far and away the most useful indicator of where we are and how everything sits. It feels like by the end of the year we will have a very good idea of which way this one is going to go. It would be very useful to understand what the chances are of confirming a mid-level resource, as I don't understand why if there is say, a 50pc chance of economic viability producing say a net £200m sale, why the MC is not close to £100m (and that's not including the other assets). A know there are a host of variables but someone enlighten me.