thanks Ozbucheron, would add that usually smelters only pay for...

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zacanzaz

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23/01/19

21:00

Post #: 37204685
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Originally posted by ozbucheron: ↑

@ceh2009 - you need to clarify your statements. What is the relevance of "So which one of the fan club is going to tell me they can “mine” a ton of tailing for under 50c???"

I calculated a con ratio of 37 some posts up.

Don't know what the present unit costs are but if we go back to the BFS at 15Mtpa they were:

hydraulic mining A$ 2.75 / tonne of tails (ore)
processing etc . A$10.31 / t
sales costs . A$ 4.63 / t which includes concentrate transport, treatment charges and silver credit.

Now at 7.5Mtpa and assuming 30% fixed costs let's say that the current costs are:

hydraulic mining A$ 3.60 / t = (2.75 x 15 x 30% + 2.75 x 70% x 7.5) / 7.5
processing etc . A$13.40 / t = (10.31 x 15 x 30% + 10.31 x 70% x 7.5) / 7.5
sales costs . A$10 / t say

total cost = A$27 / tonne of tails x 0.71 (exchange) x 37 (con ratio) = US$709 per tonne of concentrate

or a c1 cost of US$0.74 per pound of zinc in con = (709 / 2240 / 0.425)

there will be some royalties of about A$4 per tonne of tails or US$105 per tonne of con.

now at a con grade of 42.5% Zn, the revenue from the con is:

0.425 x 2240 x 1.15 = US$1095 per tonne of concentrate

from my dodgy calcs there's a margin of $US279 per tonne of concentrate = (1095 - 709 - 105)

Cash out for the next quarter is estimated at A$50M including development ($6M).

A$50M / 1.875 Mt per quarter = A$26.67 / tonne of tails (ore) which agrees well with the estimate above.

Whaddayareckon?

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thanks Ozbucheron, would add that usually smelters only pay for 85% of the contained metal and 2204 pounds per tonne. Royalty may be abit high - allow 5% of sales value for qld mineral royalty. Don’t know if they have any other royalties to pay though.

GLTA

Z

NCZ Price at posting: 61.0¢ Sentiment: None Disclosure: Held
1 Upvote

0 Great analysis

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thanks Ozbucheron, would add that usually smelters only pay for...

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