RE: fantastic day onwards to 40p9 Dec 2021 11:45
Re. production, the fact that it's DMS only and such a relatively low CAPEX to get the mine operational always meant that it was likely they would exceed any estimated production timelines. Both Cannacord & Liberum are forecasting material revenues in FY2024 (June 2023 - June 2024) and Vince is adamant 2023 is achievable. It's clear from the economics that there is a huge benefit to all in fast-tracking production and the geography & proximity to infrastructure means that there are no logistical barriers to getting things moving quickly.
Compare Ewoyaa to the likes of Firefinch's Goulamina or the AVZ Manono project and the difference is like chalk v cheese.
The AVZ logistics are actually quite ridiculous;
"The project will require the material to be transported to Dar es Salaam via Kabondo Diand. Broken down this will include trucking the material 350km along un-sealed roads to the SNCC rail line, from there, the concentrate will be carried 772km to Zambia, where it will then be transferred 165km via a second, in-country rail line, to Kapiri Mposhi, where it will finally be taken, again by train 1860km to Dar Es Salaam. In total AVZ have calculated in their DFS $41.85m would be required in capital cost for the roads and product transport mobile equipment, and $217.34/t LOM concentrate transport costs (68% of total operating costs)."
Nevertheless, AVZ have a current market cap of A$2.1B / £1.1B, yes they have a huge resource but the transport costs alone are almost higher than the total Ewoyaa C1 cash cost of $249/t!
There is so much room for the valuation to grow here vs peers.
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