G&G Posts-#5 How can there be any certainty that the Roche Bay feasibility study will be positive? I have my doubts and I believe XinXing has its doubts. The following will impact the NPV determined by the study:
1) Only 501 million tonnes indicated at 26.35% iron can be used for the feasibility study. This is only 132 million tonnes of contained iron. This is on the very, very low end for a concentrate operation. I can't think of a concentrate mine that began with that little contained iron.
2) Opex and capex will have skyrocketed since AXI completed its Roche Bay PEA in 2009. Any responsible feasibility study will note the incredible costs of working in Nunavut (Meadowbank, completed recently, doubled and tripled its opex and capex estimates).
WRONG AGAIN AND AGAIN AND AGAIN- I don' even know where to start here. Capital costs for original PEA were 1.1 billion. Operating costs $176/tonne. Of course this was a nugget plant operation but according to Gago, both CAPEX and OPEX will have skyrocketed. Well the CAPEX for a 5 mtpy concentrate start up is just under $1 billion. OPEX numbers are still not available. Now for the 10 mtpy concentrate, the CAPEX goes up to $1.4 billion with an OPEX of $36. Isn't it funny how many people on this board have been stating the advantages of having a location very close to the water. Imagine that $36. And John is using $106/tonne for the 10 mtpy start up which equates to a 37% IRR and about a 3.7 billion NPV...now if John uses what all other companies have been using ($115) that number jumps to a NPV of $4.64 billion and an IRR of 43%........YES 43%.