The life cycle of a resource nano resource cap through production & cashflow...95% fail over one cycle, 85% over 2 cycles.
We are seeing 3 through to completion currently, exposure in #metcoal, #expandablegraphite and #uranium
The initial resource stage....
1/
We are seeing 3 through to completion currently, exposure in #metcoal, #expandablegraphite and #uranium
The initial resource stage....
1/
...coupled with cycle lows presented caps of less than <$10m as entry points.
The project PFS and DFS stages coupled with an upward cycle produced caps of $70-150m, 4-6x on a diluted basis.
Then all are moving to production and cashflow over the next 3 to 24 months....
2/
The project PFS and DFS stages coupled with an upward cycle produced caps of $70-150m, 4-6x on a diluted basis.
Then all are moving to production and cashflow over the next 3 to 24 months....
2/
...with likely caps of $300-800m and diluted returns of 7-30x through 2024/25.
The average holding time will likely be 8-9 years for 14x return.
$CKA $WKT $AEE
Playing the long game over a project life cycle (and 1 or 2 up cycles) with low quartile AISC and capex.
3/3
The average holding time will likely be 8-9 years for 14x return.
$CKA $WKT $AEE
Playing the long game over a project life cycle (and 1 or 2 up cycles) with low quartile AISC and capex.
3/3
The keys for extracting these returns is to be in early, near a cycle low....likely 1H 2023 will offer such new asymmetric trade returns again in the sectors that have imploded over 2022.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
