Australia's largest stock trading and investment forum Australia's #1 stock forum

BBX

Click for more information

0.00%

24.0¢ bbx minerals limited

Sorry, some typos in there and I should made it a bit easier to...

First 17 Last

Share
Profile

Follow
Midnight26

4,791 Posts.

385

12/07/18

12:38

Post #: 34298991
Share

Originally posted by Midnight26 ↑

Don't go to too much effort. As I keep saying, the grade smashes any capital and productions costs.

If setting up a plant costs $10M and running costs are $10K/pd that's $13.65M costs in the first year. I'm exaggerating those costs just to prove a point. No doubt they'll come in much lower than that. I'm using AUD but these are just ballpark numbers - everything is much cheaper in Brazil.

If they commence production at 25Ktpa and the dirt is going (a conservative) 3oz AuEq (2 oz Au and 1 oz Ag) that's $127.5M in the first year and the capital is paid off in the first month which is a good measure of how profitable the operation will be.

Annual production costs of $13.65M divided by the metal produced at 25Ktpa (AUD $1.275M):

$13.65M / $1.275M = $49/oz production costs

This might help explain why this operation is going to be a money printing machine. What happens when they crank it up to 100Ktpa? ....then 1Mtpa with the full mining permit?

Expand

Sorry, some typos in there and I should made it a bit easier to understand but the outputs are fine.

Annual production costs of $3.65M divided by the metal produced at 25Ktpa (75,000oz):

$3.65M / 75,000oz = $49/oz production costs

BBX Price at posting: 17.0¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

Reply

Top Stories

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

ME1

Banshee's historic trenches prove rich in antimony and gold for GDM

Week 46 Wrap: Copper hits 2mth low as Trump threatens net zero pace; US rally fades; HotCopper’s picks

LYN

InhaleRX gains approval for clinical trial to test non-opioid therapy for cancer pain

EDE

NT Gov't delivers environmental approval for Empire Energy's Beetaloo Carpentaria pilot gas play

BNL

Blue Star Helium sees approval for five more wells at 'Galactica/Pegasus' project in Colorado

AN1

CuFe sells its Crossroads gold royalty to Northern Star for $4M cash; says better than waiting for mine launch

AUN

Cyclone signs MOU with Vale for development of Iron Bear play

HotCopper Highlights: Your most watched stocks for Week 46, 2024

There are more pages in this discussion • 95 more messages in this thread...

First 17 Last

Add BBX (ASX) to my watchlist