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Just my thoughts here but I'm not convinced Vince will plug in a higher SC6 price into an updated scoping study, at least not without referencing the economics at $650. I would strongly advise against it anyway.
Investors want to see projects that work using conservative spot prices. The best projects in the gold space will assume $1200-1300p/oz and the copper space $2.50-$3 p/t for example. What works at those levels will see the capital IMO.
That doesn't mean we as investors or our brokers through their analysis can't highlight the economics at +/- $150.
I'd expect the next study to show increased LOM revenues along with higher pre and post tax NPV8 to reflect the increase in resources from the latest drill campaign. That will do the job IMO.
And if that wasn't enough we'll drill some more when the Piedmont deal gets ratified...
IMO there's absolutely no need to overshoot what we have here. It is truly huge. Piedmont have seen it. From the updated scoping study and particularly the DFS the idea should be to show industry leading metrics of 125% IRR and a payback of less than one year(!) at what is now a very sensible price benchmark but with additional resource bolted on.
That's the beauty of Ewoyaa. It will be able to do it and do it well if times do become hard and should lithium prices falter again.
Vince, you have brokered a fantastic deal. Now hold onto that other 50% like your career depends on it and drill as fast and aggressively as you can.
I see that Spodumene Concentrate SC6 recently hit $925 and there's a couple of reasons why this is such a big milestone for IronRidge:
1. The scoping study was based on $650. An update to the scoping study with latest prices will have a significant uplift in NPV and I predict the Internal Rate of Return will be over 200%. From a project point of view, 200% is very very high. Not many mines in the world can boast a figure like this.
2. Our purity level means that our SC6 is rare. It means less processing (helps with the IRR and capex) but more importantly it commands a higher price at port. We could easily be looking at touching that holy grail SC6 price of $1000.