The Jackaderry project is highly differentiated compared with other copper plays in Australia or globally, owing to the unusually high grade of ore being identified. In this report we examine the substantial economic benefits associated with higher ore grades.Full report is available via Capital Network website
The key attraction for investors here is significant, near-term, cashflow generation. The simple, low cost, low capex Arapua fertilizer project has begun production on a trial mining basis. We believe the company can generate free cashflow yields of between 30-80%pa from Arapua, based on a range of reasonable sales price & volume assumptions. The most likely outcome being around ~55%pa FCF Yield (based on US$55/t sales price). The same assumptions generate a project [email protected]% of ~£60m for this project (compared to a current market cap of ~£18m). We note that the company has no debt, and should not require any fundraising to develop this project further, in our view.
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