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Baldrick, I have a very, very, very cunning plan. Our resource...

  1. pkn
    368 Posts.
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    Baldrick, I have a very, very, very cunning plan.
    Our resource is not large enough to sustain a standalone 150,000 t/pa SoP project.
    But what if we can turn silver (MoP) into gold (SoP).
    Now there is an idea. Now we can hit our 150,000 t/pa target.
    Brilliant.
    But where will be get the MoP from?
    Well, we will have to buy it.
    But that is going to cost us money right?
    Well, yes it will.
    Which means it eats into our margins.
    Not necessarily.
    What do you mean?
    Well if MoP prices fall, then the cost to produce SoP falls too.
    The cost savings on a MoP decline can be significant.
    Really?
    Well it is close to 30% of our production.
    Right, you are a genius!
    But what if the SoP price falls?

    Well then we begin hoping the SoP price doesn't decline as much as MoP.
    So are you telling me that 30% of our project is dependent on the MoP-SoP differential?
    Yes, that is right.
    Bugger!
    I wish APC had what those guys at RWD have.
    You mean a killer marketing team?!
    Yeah that...hahahaha (fits of laughter)
 
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