Guys sorry regardless of the project this is a terrible report, reads like an amateur wrote it.
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What stands out about Celsius is the DRC-like nature of its deposit without any of the associated political/sovereign risks. If management can continue to prove consistent grades across their entire 20km+ strike we have confidence that it will be enough to develop Opuwo economically, particularly if they are able to define higher grade zones as well. Without full JORC resources and scoping studies, valuation is difficult. However, back-of-the-envelope in situ math can be applied and suggests that Celsius is quite cheap. Based on $55,500/t Co,
$2615/t Zn, $1970/t Mn, $5685/t Cu,
$9190/t Ni, CLA has an insitu grade of 3.17% CuEq (using the below grade assumptions and ignoring recoveries until met work is established) and a basket price of US$166/t which is extremely attractive.
If we take a step further we could probably make some rough assumptions around recoveries. Kamoto (Glencore's concentrator for Katanga mine in Congo), showed a 2-year average recovery of 61% Co and 68% Cu. The WOL project Glencore is currently doing will involve whole ore leaching, and is targeting an 85% Cu recovery rate (but that involves oxide Cu in addition to some sulphides; the sulphide recovery is 63%), and 65% Co. Zinc and manganese recoveries are harder to come by. However,
CuEq recovered into concentrate will probably ballpark 2% with well over $100/t of ore value. Assuming standard payabilities, if CLA is able to deliver enough tonnage to drive down cost per tonne processed and distribute capex cost,
this becomes a no-brainer. Based on surface samples, CLA should get pockets of high grade zones and if the entire 20+km is mineralized, this asset should have enough scale to be economically developed.
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Leaves me with more questions than answers. Is Zn/Mn/Ni now looking to be recovered and sold? Why are they not using the indicated floatation recoveries?
Probably ballpark 2%? $100/mt of ore value or concentrate value? No brainer?
The flowchart they have provided is related to Katanga's project, Katanga has a roaster to roast their sulphide floatation concs, hence I asked whether the plan is now whether CLA will also have a roaster:
http://www.katangamining.com/~/medi...esentations/2015-06-investor-presentation.pdf
At this stage there are a number of unanswered questions. As I have mentioned before I am more than happy to wait for Scoping Study/PFS and if it looks great and is at an attractive price then I'm more than happy to buy.
