Question for those who have contributed a thorough economic estimate on ZEN.
Just looked at NioCorp's announced PEA to learn and their stock dropped 22.52% to close at $1.17 after the announcement with key facts below. And they have a signficant off-take agreement, I believe for 50% that was mentioned on BNN.
Anyone have any thoughts how good the Zen PEA has to be (verus what you think it will be) to support at $3 or $5 or $10 SP after ZEN PEA announcement (whenever it happens)? Is it the PEA that matters or the institutional investor/off-take/buyout type arrangement that may follow (or come before)?
Very interested in opinions and discussion on these points as I wait patiently long. I figure these thoughts would be interesting for all as we wait.
Not_A_Rock_Guy
NioCorp Announces Positive Preliminary Economic Assessment Results for the Elk Creek Niobium Project
Vancouver, British Columbia - April 13, 2015 - NioCorp Developments Ltd. ("NioCorp" or the "Company") [TSX: NB; OTCQX: NIOBF; and FSE: BR3] On behalf of our shareholders, NioCorp is pleased to announce the completion of a positive Preliminary Economic Assessment (PEA) study for the Elk Creek Niobium project.
Highlights of the PEA include:
* Pre-tax NPV of US$821 million with an IRR of 15.7%
* After-tax NPV of US$562 million with an IRR of 13.9%
* Average EBITDA of US$177 million annually
* A direct cash production cost for ferroniobium of US$6.50 per kg of niobium at an annualized production rate of 7,500 tonnes of ferroniobium per year for full production years, net of titanium dioxide and scandium trioxide credits
* Annual production of 23,000 tonnes of titanium dioxide and 12.8 tonnes of scandium trioxide
* An upfront capital cost of US$653 million, which includes US$136 million for the development of an underground mine and US$517 million for mineral processing, metallurgical and infrastructure costs
* Total upfront capital costs of US$919 million, which includes contingency and owner's costs
