WKT 5.56% 19.0¢ walkabout resources ltd

From the above post I made the comment the project should be...

  1. 3,476 Posts.
    lightbulb Created with Sketch. 2178
    From the above post I made the comment the project should be separated into 2 different categories...Mining and Milling...

    Let me explain in further detail....A quality mine can support a higher strip ratio while the cut off grade is equally important....If the cut off grade remains low and not raised to a higher level there is gain to economics of a higher strip ratio...IMO

    The Lindi project has a modelled cut off grade at 10% TGC while all material below this point is considered to be waste material...The advantage of grades being fed through plant are of high value per ton while reducing startup capex from the beginning. So far the Lindi project has achieved the lowest capital intensity per ton mined. It differentiated to peer projects by optimising the project not NPV....Don't be confused by NPV as this is a self-imposed level aligned to current size markets. Some peer projects opted to drill projects to confirm a large resource resulting in a high NPV how ever those market do not exist today....Plenty of expansion opportunity growing to known markets with certainty.IMO

    Strip Ratio 4.3:1 life of mine

    5.3 tons of dirt moved for 1 ton of feed grade at 18% TGC average life of mine

    Cost to mine from $13-25

    5.3 x $18 average= $95 estimate cost per ton of feed stock at mining level

    Per 1000 ton of feed stock

    $95 x 1000 = $95,000

    1000 ton of feed stock grade at 18% TGC=180 tons of premium concentrate

    Basket price US $1510 by Pareto model

    180 x 1510 = US $271,800 Revenue

    To achieve EBITDA revenue less ROM including plant capex

    271,800 less 95,000= US $176,000 EBITDA including plant capex repayment

    Mike Strip ratio cost.png
    To give an example of a low yield project 5% TGC low strip ratio

    Strip Ratio 2:1

    3 tons of dirt moved for 1 ton of feed stock with life mine 4.5% TGC and 2% cut off

    3 x $18 average= $54 low cost mining

    54 x 1000 = $54,000

    1000 tons x 4.5% TGC = 45 tons of concentrate
    30 x $1510 =US $67,950 less plant capex 4 x the size of project above

    US$13,950 EBITDA less plant repayment 4 x the size

    Basic example only with no reference to other projects or correct input ROM cost's ect

    From reading posts going around a lot of chatter surrounding plant concerns and not the resource it's self...As a mitigating point the Lindi project is to industry with experience and not to compete with this on start up...It has built in grade control by not including high grade domains 1 formerly 7,8 and 9. This domain is free dig and will be stock piled adjacent to mill feed for grade control...

    Lindi has delivered the lowest capital cost per ton mined...It offeres the highest margin curve per ton mined from a self imposed 40,000 TPA...It has opportunity to high feed grade the plant in early years if required at little to no extra cost....IMO (DYOR)

    Regards Croc
    Last edited by Croc-file: 15/01/20
watchlist Created with Sketch. Add WKT (ASX) to my watchlist
(20min delay)
Mkt cap ! $62.84M
Open High Low Value Volume
19.0¢ 19.0¢ 19.0¢ $5.137K 27.03K

Buyers (Bids)

No. Vol. Price($)
2 54931 18.0¢

Sellers (Offers)

Price($) Vol. No.
19.0¢ 53999 3
View Market Depth
Last trade - 10.09am 24/01/2020 (20 minute delay) ?
0.010 ( 2.78 %)
Open High Low Volume
18.5¢ 18.5¢ 18.5¢ 30000
Last updated 10.31am 24/01/2020 (live) ?
WKT (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.