RE: great results!!!!!!This is extremely good news even though market doesn't seem to recognize it fully. We all know that Cumo NPV was already monsterous at, say, half the current metal prices. But this NR has impact on worst case scenario as relative value of by-products increased.
Here my take, written on rno board, but I might as well copy it here:
IRR 15% breakeven is at $7.5/lb Mo or $5/lb moly oxide. I'm assuming 20% better than average moly grade for first seven years. Considering they have 700 million tonnes of that stuff or about one third of resources (and also near surface), I think the assumption is conservative.
All-in costs per pound Mo is $2.18 for average resources and negative for Cu-Ag zone. By-products cover $3.27/t of the $6/tonne all in costs. Metallurgical study confirmed low processing costs, but I didn't reflect that to opex at this point. (Note that MSQ management opex estimate is somewhat lower. )
Parameters:
94% Mo recovery
86% Cu recovery, 85% payability which includes TC/RC
73% Ag recovery, 90% payability in copper concentrate
95% Rhenium recovery
40% Tungsten recovery
0% Gallium and osmium recovery (so there's room for pleasant surprise)
99% Roaster recovery
Prices:
Cu $1.7/lb
Ag $9.5/oz
Re 5000/kg
WO3 $6.2/lb
NPV improved to $4.2B from $3.6B at $14/lb Mo price. Or from $2.15B to $2.6B after tax.