Almonty Industries Inc T.AII

RE:RE:RE:RE:Two Totally Separate Process Plants For Tungsten And Molly !

[QuarterDollar]

• @5ilver, thanks for your comments as it contributed to providing clarity on the issue I was having such that I re-read LB's comments that lead to the source of my confusion.

• On July 18th, LB stated

We are also excited to formulate a robust mining plan so that this project will run alongside our tungsten mine simultaneously given that both can share the same existing mining infrastructure and the dramatic development cost savings it presents.

• I made the mistake of interpreting this statement as sharing the processing equipment for both tungsten and moly. But the processing equipment is NOT existing mining infrastructure as it yet has to be installed. Plus cost savings are for development only and not operational (...it is too early to assess operational costs).
• My input model was indicating there was an issue with shared processing equipment as a the production rate of moly and the profitability was was unsubstantial at best.

MOLY

• According to my numbers, an initial production of 2M tonnes of ore for at least the first decade is the sweet spot. It could be reduced to 1.5M tonnes after that to extend mine life. (I expect a minimum of 1.5M tonnes of ore to be processed annually)
• Processing this amount of ore would produce a significant amount of moly that would be meaningful to POSCO.
• Processing 2M tonnes would give the initial JORC resource a 10 year mine life.
• It would contribute sufficient profitability for the purchase and build out of the other mines (3 more : 2 moly, 1 NA tungsten) over a 10 year period.
• This would make Almonty a new tier One Global Player in the world.

• Sangdong tungsten is a game changer for Almonty. Game changer number 2 will be Sangdong moly. The profitability from both Sangdong mines can drive any other tier one mining project without the need to borrow funds. 
• This also means, funding $50M projects such as the downstream plant are a no brainer.
• Now the priority is to get the Moly mine up and running asap. We have 2 years before Sangdong tungsten will produce profits. We need a mining plan, tunnels dug out, the moly processing equipment ordered (I expect it to cost approx $150M).
• In 4-5 years, I estimate the Moly plant installation to begin.