- The Next Big Rush
- Posts
- ⛏ The World Is Running Out Of Minerals
⛏ The World Is Running Out Of Minerals
PLUS: Palladium/Copper Feasibility
Greetings Contrarian,
This is The Next Big Rush, your daily drop of mining/energy investing news. Where we come together and brace for another Friday of survival.
Here are the highlights :
✍🏼 Palladium Copper Feasibility
✍🏼 The World Is Running Out Of Minerals
✍🏼 Silver Touches $24
🧐 Generation Mining - Palladium/Copper Feasibility
Highlights:
NPV at a 6% (!) discount rate of $1.16b
IRR of 25.8% based on a long-term price of US$1,800/oz for palladium and US$3.70/lb for copper
Payback period 2.3 years
Initial Capex:: $1,112 million (+ 25% from the 2021 FS)
LOM average operating costs of US$709/PdEq oz and all-in sustaining costs of US$813/PdEq oz 3 (+14% from 2021 FS).
Creation of over 800 jobs during construction jobs and over 400 direct permanent jobs during operations
Mining and it’s never-decreasing Capex!
Here’s to hoping the tides turn in the business so good projects can be built and value realised.
🤷🏻♂️ The World Is Running Out Of Minerals
Expansion capital spending across the industry has typically run above 20% of EBITDA, but has now fallen to around 10%, as the ghastly chart shows:
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/fd972de2-38c9-43b1-8be1-124b3133eac9/bmo-capex-ebitda-global-mining-.jpg)
BMO Capital Markets / Mining.com
While companies have talked about investing, the little they have done hasn’t been enough.
The investment bank believes the need for medium-to-long-term pricing to trade at a premium to the cost curve is necessary to bring us back to balance.
Like, of course.
🖇️ Silver Touches $24
The silver crowd goes wild as silver finally (since Jan) touches $24, a short 2 months after some pundits thought Gold’s little brother would hit $14 before $24.
Will it hold the line or disappoint like it has done pretty consistently for the last decade year?
We will not post a chart, to avoid the jinx.
🤣 Meme of The Day
This should get interesting now 🏧📈 #ZPUT#SPUT#uranium
— Uranium Corgi (@UrTokenCorgi)
8:40 PM • Mar 29, 2023
Quick Q! Today's issue was:(click to vote) |
Happy Speculating!
The Editor
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.
Reply