PIO 10.0% 1.1¢ pioneer resources limited

Ann: Quarterly Activities Report, page-19

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  1. 15 Posts.
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    Total revenue approx AUS$20 million (1600t for US$1.2million = US$750/t * 19,500t /0.7274 (exchange rate) approx AUS$20 million)
    less costs $6.3 million ($3.7 million in Dec quarterly and $2.6 estimated in March quarterly) (ex some staff costs)
    less state royalty = 10% of the sales price = $2 million  (DSO Ore attracts a 10% state royalty)
    less Traditional owner royalties ???
    Total profit from this operation will be around $10-$11 million

    This is a great result and the company and management (and the worker bees) need to be congratulated.

    BUT actual returns to the company excludes the cost of discovery and evaluation...say $4 million

    Actual profit in my view will be $6 - $8 million

    It should at least stop any share placements for a couple of years and hopefully the can discover a true company making deposit in that time. 

    If they can sell the feldspar then that may add a small annual dividend but it I would not expect it to be huge say $30/t (profit) x 100000 t = $3 million...so less pressure on ongoing share placements.

    Cheers

 
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Currently unlisted public company.

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