RE: Tick tock, tick tock9 Feb 2022 18:54
When SMS group took on the Cinovec project on behalf of Geomet (49% owned by EMH 51% owned by CEZ) they stated a "14 months timescale" for completing the "Front-end Engineering Design" (FEED) an obvious critical part of the dfs - that was back in November 2020 so very much nearing completion!
In addition, Bara Consulting were appointed mid 2021(July) to assist in the DFS study and their work as per the updated PFS RNS dated19/1/2022 identified the backfilling potential of the Cinovec mine specifically changing the planned mining method for the Cinovec orebody from open stoping to longhole stoping with backfill using paste backfill.
As a result of the FEED updates and the longshore stoping Geomet benefit in increases to the Cinovec mine's proposed ore extraction from 34.5mt up to 54.5mt, enabling an increase in the annual processing rate by approximately 33% per annum over the previous 21-year life of mine, from 1.69mtpa to 2.25mtpa over a now 25-year life of mine. (16% INCREASE IN PRODUCTION TO 29,386TPA)
The PFS update is not only highlight obvious increased metal prices - reading between the lines the ongoing DFS studies are included with the increase in production and better ESG credentials.....And this is only phase 1 representing less than 10% of the total resource .......expecting many more phases(increases to production) to come on stream where valuations will be well over 15 times current mcap! One off-take could easily take current annual production in its entirety (CEZ/VW)
Lets hope CEZ allow us to be part of the end journey....but either way we are several multiples the current s/p values!
No brainer!