RE: Today's RNS20 Jun 2023 13:13
'I would imagine a good DFS could see a little uplift in the sp but I do think the numbers being good are sort of expected ..it will be the granting of ML that will hopefully put to rest the BO report'
But the DFS is WAY more than just the numbers. The DFS is the document that tells the market and especially big money investors that now is the time to put your money on the table. Do not underestimate the value of the DFS to II's like MIIF and in the wider market. The ML is pretty much already guaranteed with this project especially with the DFS to show that the mine will be a superb project for Ghana, so nobody needs to wait for ML before investing, but they do need the DFS to show that the mine will work and be highly profitable. The DFS is the huge derisking of Ewoyaa, the ML is just dotting the i's and crossing the t's.
Another thing. Directors bought recently. During interview we were told that Directors opportunities to buy are few and far between due to the amount of inside knowledge they are aware of. Once the DFS is announced, all of that inside knowledge is revealed to the market and at that point Directors can pile in again for more ALL stock. I see them taking that opportunity to fill their boots even more.
Definition.
THE DEFINITIVE FEASIBILITY STUDY (DFS)
The question ‘To mine or not to mine?’ is resolved at this stage.
By now all processing parameters have been through detailed and accurate metallurgical test-work has occurred.
While inevitably some will be assumed, these are usually realistic because they are dependant on all mining, processing and other considerations taken at and before this point.
As an example, Arafura Resources’ (ASX: ARU) Definitive Feasibility Study for its Nolans project in the Northern Territory forecast average annual production figures of 4,356 tonnes of Neodymium-Praseodymium oxide and and 135,808 tonnes of merchant grade phosphoric acid.
The mine’s life will be 23 years and average annual pre-tax earnings at A$377 million EBITDA, although the project would require just over $1 billion in capital and up to 650 employees at the peak construction phase.
The company used the study’s release to proclaim to investors, “the Project is financially and technically robust to support a long life operation”.
https://stockhead.com.au/primers/your-guide-to-mining-feasibility-studies/
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