RE:RE:RE:So now our market capso quick read of this new FS.
Long lead items out to tender. progress!
Worker camp now included in capex. Recall in the permit recommendation we had not been able to say where the camp would be. We were negotiating with Quebec hydro to use their camp.
We will now build our own and it will house 500 workes and cost 43 million.
This has all the signs that Yves Perron and his construction team now have their fingers all over the construction of this project. Making this change seems more about control of the over all mine construction schedule and risk mitigation. The mine constuction had a huge dependency on the camp being ready and you literally have no control of that if it's being managed by Hydro Quebec. It is also a huge benefit housing workers only 4km away from the mine site vs 25km away. I only wish this could have been sorted out sooner.
Capex increase - higher input cost given current environment. No one kicked and screamed at LAC's thacker pass when they upped phase 1 CAPEX by 1 billion dollars. Phase 1 is now 2.2 billion and Phase 2 is 1.8 billion. So thacker pass now sits at 4 billion. Just a bit of context.
So it looks like the main drivers for capex increase are infrastrucure costs and process plant updates and the camp.
Infrastructure added 37 million,
process plant upgrades added 51 million. Looks like they decided to upgrad some equipment Possibly done as they worked through the engineering phase.
The process plant optimizations reduced capex by 33 million and earthworks was resuced by 16 million. So the optimization process was pretty successful.
Upping the average selling prices to a still huge 65 percent discount to 12 month trailing price.
I'm agnostic about this as management have a better handle on contract prices they are negotiating....all we and everyone else see is just spot. So I'm fine with this