Ann: Quarterly Activities Report, page-20

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readyaimfire

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31/01/19

22:14

Post #: 37290781
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Originally posted by Dipsomania ↑

Originally posted by readyaimfire
Amended to USD

Guesstimate of total net of loan value of pollucite ore based on first shipment and first proceeds

1600 ton for 1.2 mil or $750 per ton

750*19,500ish ton=14,625,000

14,625,000-4,800,000 approx $9,825,000 net USD

14,000,000 AUD
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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The discovery and evaluation cost are sunk and will not reduce the net dollars. Accounting profit will be different.

Royalty and payments to landholders I agree will reduce the cash.

PIO Price at posting: 1.7¢ Sentiment: None Disclosure: Held
2 Upvote

0 Great analysis

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Ann: Quarterly Activities Report, page-20

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