Feasibility Studies

The following accounts give examples of recent FEASIBILITY STUDIES completed by Roskill Consulting Group.  To protect confidentiality, client names & identifying data have been omitted.

Study of the global market for rhenium for a potential producer

Assignment

The client was in the process of working through the technological issues with respect to the recovery of rhenium from a copper-gold-molybdenum deposit in South America.  The company’s ultimate goal was to determine the financial and operational implications of the rhenium opportunity, including factoring it into the project’s economic modeling.  Roskill was commissioned to assess the global market for rhenium, including reviews of supply and demand, and forecasts of the supply/demand balance and prices to 2015.

Approach

The initial stages of the assignment were carried out by desk research, drawing on Roskill’s extensive in-house information resources.  This work resulted in a detailed analysis of global rhenium supply and demand, international trade between the main supplying and consuming countries and a review of historical price movements for rhenium.  In a second stage of work, telephone interviews with key players in the rhenium industry were used to gain an even more in-depth perspective on the rhenium market and to elicit specific information, such as payabilities, treatment charges and standard industry specifications.  The interviews were also aimed at obtaining the industry’s opinion on the likely future trends in supply, demand and pricing for rhenium.

Result

The client was provided with a detailed and in-depth report on the rhenium market that was used as part of the client’s optimization study into its South American project.  The optimization study was completed in January 2010 and the project remains on target for a decision to be made on construction of the operation in mid to late 2011.

Refractory mineral market for a pre-feasibility study

Assignment

A North American client was conducting a pre-feasibility study on a deposit of a high alumina refractory raw material in South America.  The client required a study to evaluate the potential for an additional supplier in the marketplace and what impact this, and other industry trends, might have on supply, demand and price going forward.

Approach

The supply of this particular refractory raw material is dominated by China, so understanding the impact of Chinese policy was critical to evaluating the future market potential for an additional new supplier.  A desk-based review of world supply and demand, with an emphasis on Chinese mining and export trends, was undertaken.  Contact was made with a number of end-users to validate the assumptions gathered about the market and to establish their purchasing requirements going forward.  A forecast projection of supply, demand and prices was developed to show the impact of a new supplier in the market.

Result

The client was advised that Chinese policy on exports of this refractory raw material had negatively affected demand and prompted substitution.  However, the study indicated that there was potential for a new producer to enter the market if it could guarantee a stable supply and that the pricing point of the company’s product was competitive with alternatives.  The client is moving forward with feasibility studies.

Study of the markets for molybdenum and rhenium in Europe

Assignment

The client was granted an exploration licence in a central European country in 2005 and further exploration confirmed historically identified mineralisation zones, particularly molybdenum and rhenium mineralisation.  Roskill was commissioned to provide a review of global supply and demand for molybdenum and rhenium, with a detailed focus on the European market.

Approach

A desk-based review of the markets for molybdenum and rhenium, including supply, demand, trade flows and prices, was undertaken initially.  During this stage, key producers/suppliers of molybdenum and rhenium, as well as major consumers, were identified.  In the second stage, a programme of interviews was carried out, principally with target companies in Europe.  Around 10-15 interviews were held, mainly by telephone.  The primary research programme enabled Roskill to provide more in-depth insight into the industry in Europe, particularly with reference to production costs and processing charges.

Result

The detailed report that was provided to the client by Roskill was used in the company’s ongoing development programme for the central European project.  Further exploration and development work was carried out in 2009 and in early 2010 it was announced that the project had been provisionally sold.