@RhinoInvestor

You have to go to page 3/4 of the 12 September announcement.

Yes a bit higher than the current spot price. Maybe using spot you can discount the NPV by a third?

Edit: Still too early stage until we get a Mineral reserve established. But with all the work done so far, I guess Beament is quite confident

Edit: I also note that Develop will be starting to make those contingent payments. Have to go back to the previous announcements.

I see the price rallied hard today. Not sure why when the presentation deck and study were released 12 Sept. But I'm not complaining!

Thanks for the extra detail @edgescape

What I’ve found when studying some of these pre-development miner is that the assumptions in their models often mean that they are unlikely to ever get to development unless there is a significant jump in price. Hence, their NPV is effectively zero as they won’t get the project funded and started to transition into development.

This one with estimates only about 10% above current spot prices looks much more promising, especially for Woodlawn which looks like it requires very little capital ($32m) to get going as its a restart project so could give DVP some cash flow while they develop their bigger prospects. I might do some digging and look at their All in Sustaining Costs assumptions. I’ve worked out that trying to do my rudimentary DCFs on that basis gives me a “how much would prices have to drop before they are losing money model” which I know is a bit pessimistic but helps me sleep (sometimes).

To see a good comprehensive feasibility or scoping study go to Capricorn Metals and search for the announcement in 2017

It is some time ago and is gold, but it shows what you should be looking for when assessing any sort of project.

On comparison I think the Karlawinda study shows Woodlawn still has some catching up to do. Most importantly they need to lift the resource life from 7 years to around 10 or more years before this can be a real buy at this price. Same case for Sulphur Springs as well which is around 8 years. But bear in mind Karlawinda is open pit while woodlawn is underground so can't really do a real comparison.

The big advantage is all the infrastructure and preproduction work has been done which takes out some of the risk.

I admit when I first bought in the Venturex Resource days, I didn't know much about Sulphur Springs other than the CAPEX was much lower than Khoemacau and the fact that Northern Star and Precision Opportunities Fund were both major shareholders. I thought initially Sulphur Spring would be easy to get approved and maybe Northern Star would do some sort of takeover and become like BHP or OZL given they loaned all that money. Only when I did more digging I realised my mistake that Sulphur Springs was a mediocre project compared to Khoemacau and hence why it sat dormant for so long.