Yes, cash flow positive requires them improving the...

Yes, cash flow positive requires them improving the metallurgical recovery. Hopefully improvements in recovery don’t require additional grind time, more grinding media or more reactives.

42.5% is the recovery based on them achieving between 40% and 45%. A couple of one offs at 49% I disregard.

So 42.5% recovery of 2.95% grade times $US2,500 per ton times 85% smelter payable = $26.64. That figure is not arguable.

The smelter charges  $150 per concentrate ton so if the ratio is 20:1 that’s $7.50 an ore ton. That leaves $19.14.

No one is buying FOB Australia so they need to pay ocean freight. That makes it a loss right there before you’ve considered cost to mine, corporate overheads, interest on debt, actual processing costs.

You can not process a ton through a flotation circuit for 
under $US10. No one does. 

At these recoveries there’s simply not enough in it.