Do you think share price is being punished with the increase in capex ? This 50% increase may have others pointing to rising costs ? The upgrades certainly give promise of an increased tpd and who can complain about the tax credits .
- Partly as a result of the decision to match the HPA process with the SGA process, total capex of the HPA plant has been increased to $45mm net of tax credits up from $30mm previously. This implies that the gross amount of capex budget has been increased to $75mm, up from $50mm.
- Some upgrades and oversizing of key plant components have also resulted in the capex increases. For example, both the leaching reactor vessel and the silica filtration press
- An Outotec oven will be ordered and received very shortly to replace the smaller and less efficient Harper ovens. This is understood to be the main component of the $15mm net capex increase.
- While there may have been some escalation in capex, this is not uncommon for mining and tech. companies that are commercializing disruptive technology.