Don't forget the royalty payments I did some digging into the details, and according to the Clean Teq PFS, Ivanhoe has a 2.5% of revenue royalty (after NSW royalty) on the Sunrise (formerly Syerston) project. The DFS will be out in the next 1-3 months.
Rough estimate:
PFS: Cobalt -> 3,222 (tpa) x 72,000 (current price) x 93% (recovery) = ~$216,000,000 USD
Nickel -> 18,730 (tpa) x 11,500 (current price) x 93% (recovery) = ~$200,000,000 USD
Assuming 100% is payable gives us ~$416,000,000 of revenue per year.
The NSW Royalty = Revenue - Processing Cost – (33% x Site Admin Cost) – Allowable Depreciation Deduction - Transport Costs) x 4%
Using figures and estimates from the published PFS, I come up with:
($416,000,000 - $105,375,000 [$56.2 x 0.75 x 2,500,000] - $2,225,000 [1/3 x $3.56 x 0.75 x 2,500,000] - Allowable Depreciation Deduction - Transport Costs) X 4%
So $308,400,000 (not including depreciation and transport costs... couldn't get an estimate) x 4% = $12,336,000
Ivanhoe Mines Royalty = [$416,000,000 - $12,336,000 (which is too high)] * 2.5% gives us
So over $10M USD/yr .... not bad considering we can expect payments to start sometime in 2019! It should help take care of some of the annual Ivanhoe G&A.... if the company is still around then.