- Metallurgical test work, transport logistics, energy and water study - underway;
- Resource extension drilling - April;
- Process plant design & resource modelling - 2Q17
- Mine optimisation - 3Q17; and
- Updated study results - 4Q17.
The WMP is a joint venture between Cassini and OZ Minerals Limited (ASX:OZL). OZ Minerals will earn up to a 70% interest in the WMP by exclusively funding a minimum of $36m on development and exploration. This will see Cassini free carried through to the completion of a DFS and a decision to mine.
Analyst Comment: Cassini and OZ Minerals continue to work diligently as the WMP takes shape. The resource extension drill program which commences shortly will target higher grade sections of the resource area. Assuming the program is successful, this could change the mine plan (Optimisation Study - 3Q17) resulting in higher grades, and therefore increased production earlier in the mine life compared to the previous study.
As OZ Minerals is a partner in the WMP capital constraints have largely been removed. This could result in the throughput (currently - 4Mtpa), increasing when the revised study is released (4Q17).
Cassini also reminded the market that in addition to nickel and copper, the WMP will produce cobalt (500tpa). With a current spot price in excess of US$54,000/t, even with a conservative payability of 50%, the WMP would generate revenue of around $18m pa.
Valuation: We increased our valuation to $0.20 / share (previous - $0.17/share). This is due increasing our cobalt price assumption in-line with the spot price (US$54,000/t). The information should not be the only trigger for your investment decision. We strongly recommend you seek professional financial advice whenever making financial investment decisions.
To view the video, please visit:
About Cassini Resources Ltd
Cassini Resources Limited (ASX:CZI) is a base and precious metals explorer and developer. The Company's flagship West Musgrave Project, located in Western Australia was acquired from BHP Billiton in 2014 and hosts a number of nickel and copper deposits as well as providing significant exploration upside.
About The Sophisticated Investor
The Sophisticated Investor is a new equity investment tool which seeks to assist investors in becoming more informed in their investment decision making. We show and tell investors about a company in a series of short, informative videos. We possess specialist equity analyst skills and are complemented by video professionals. We conduct site visits and interview management, in a way most investors simply aren’t able to access. We promote long term value creation for investors by employing detailed financial analysis and intrinsic value calculations.
Adam Kiley trading as The Sophisticated Investor ('TSI'), (AR No. 458224), is an authorised representative of Intelligent Financial Markets Pty Ltd (AFSL No. 426359). The information contained in this communication is intended as general advice only. Your personal objectives, financial situation and needs have not been taken into consideration. Accordingly, you should consider how appropriate the advice is (or is not) to your objectives, financial situation and needs before acting on the advice. The information in this communication should not be the only trigger for your investment decision. We strongly recommend you seek professional financial advice whenever making financial investment decisions.
Conflict of interest
TSI does and seeks to do business with companies featured in its articles and videos. As a result, investors should be aware that TSI may have a conflict of interest that could affect the objectivity of some articles or videos. Investors should consider TSI articles and videos as only a single factor in making any investment decision. The publishers also wish to disclose that they may hold stock in some companies featured in their articles and videos, and that any decision you make to purchase the stock of a company TSI profiles should be made only after you have initiated your own enquiries as to the validity of any information contained in those articles and videos.
TSI will only initiate coverage of a company that passes our internal investment checklist. Once a company has passed this checklist, we will initiate coverage of that company and follow up with ongoing updates and commentary on its activities. Articles and videos produced and published by TSI are NOT Research Reports in terms of ASIC Regulatory Guide 79.
The Sophisticated Investor
Oz Minerals Limited
Cassini Resources Ltd