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
PIO Price at posting:
1.7¢ Sentiment: None Disclosure: Not Held