A40 losing since 5 years, TAW now in their spiral!, page-69

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Novice2012

536 Posts.

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18/01/19

07:15

Post #: 37150825
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Originally posted by johnwightman ↑

Originally posted by Novice2012
Agreed. The parity you quote between aud & usd 4 - 5 years ago on average were not a great deal different to what it is today...in fact...as long as pfs and dfs costs and sale prices were calculated in the same currency...it would essentially be a moot point cause cost and sales prices will move accordingly. The only time you would really have a difference from pfs and dfs profitability is if one or the other go opposite i.e. sales prices drops below consideration in both studies or if costs blow out way beyond consideration given in both studies.

The other interesting thing you mentioned and are probably right about was nameplate to achieve those cost and profitability results. A40 produced 50kt in the second half of the calendar year which would take their total to let’s say double 100ktpa which is not 50% of that figure but yes closer to 50% than 100%. Your cost theory seems very short sighted unless you absolutely believe that A40 will never produce 155ktpa. So taking that into consideration, how long do you think it would take A40 to reach 155ktpa or do you theorise they never will?
it is a bit general I admit. However it is a good assumption to assume that it costs almost the same to produce 100kt per annum as it does to produce 155kt per annum because the number of employees are exactly the same and the power required is the same (gen sets run 24/7). The mining cost is slightly lower because (you hope) the mining contractor sends all the sub 0.4% to waste. The plant operating cost will be virtually identical because everything is running 24/7 and in fact when you run low grade or as a40 is doing you fill up the slimes dam and the tailings stockpiles faster and save a pittance on lower con transport costs

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The cost of running the plant doesnt change...is true but you almost seem convinced we would never begin mining higher grade ore or even produce 155ktpa. Comsidering that you have been initmately involved with the project and probably have more insight, do you think it is possible that A40 will reach nameplate productiom by the end of Jul 19?

A40 Price at posting: 20.5¢ Sentiment: Buy Disclosure: Held
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A40 losing since 5 years, TAW now in their spiral!, page-69

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