Guys - I've done a lot of research on graphite over the years and I don't mind BAT, first to market (or second follower) and all that - exposure to downstream, crawl/walk/run is smart etc. etc.
I'm trying to model the project in line with the RCF transaction and have a technical query regarding the cost of diesel for those who've followed it for a while or who have Mozambique experience...
Sorry for getting technical, but this is very important input as it will also be used for drying the graphite, which probably uses even more diesel than power generation and is likely wrapped up in their processing cost, so here goes:
Appendix 3 of VES (p.12)
Diesel consumption pa (ex-dryer?): 7.17 ML
Diesel cost pa (ex-dryer?) $92.17/t
So at an average production rate of 49,600 tpa ($16.72M / $337, calc. from p.6) this is $4.6M pa in diesel (ex-dryer), which when divided by 7.17ML is about US$0.64/L.
So let's call diesel ~US$1.00/L at the bowser in Moz, suggests that BAT are exempt from taxes and duties of ~50%.
Can some help me understand if all the above is correct?
BAT Price at posting:
6.1¢ Sentiment: Hold Disclosure: Not Held