Here is a sort of suppositions that I have on CuDeco.
Working on A$6,250 per tonne(minimum) for copper.
First 3.333 years (10 mt).
Cueq.
10mt @ 1.61% is income of A$1,006,250,000
or A$301,905,000 pa.
Cu only.
10mt @ 1.39% is income of A$868,750,000
or A$260,651,065 pa.
So with everything at a minimum and ignoring whether the Company sell any other produce, CuDeco have very good income the first 3 years.
CuDeco has plenty of upside. The above are minimum percentages.
Every 0.1% in cu or cu eq that comes out of the ground at Las Mineale brings in an extra A$19 to A$20 million.
This is all profit. Costs have already been paid to get it out of the ground and run it through the mill.
So any increase in material is all profit. CuDeco are about to open up the highest percentage NC level at 65 metres from surface at Las Minerale.
The CuDeco Board report that they expect to pay the loan in Oct. '16(US$20m. ) and Jan.'17 (US$40m.) . With full production stated as starting end of July,'16, CuDeco can pay out of approximately A$80 million to the Minsheng Bank and be out of debt in 6 months.
To me that says profit of A$160 million p.a. minimum for the first 3.333 years.
