tro cf jml mining cost ebit etc

To get a handle on mining costs, JML has a very similar metals mix, and similar grades. They were projecting a slight negative production cost once by-product credits are accounted for. (I need to see what they are saying today; this was a few months back that they said the production cost was -.45c/lb).

JML has a ton rock value of $A990 at current prices and is also underground. This is $100/t more than TRO.

With JML planning to produce 360,000 tpa this is what I calculate on current spot prices for JML;

360,000 x 2205 x .113 x .88% recovery x $US1.98/lb /.77 = $203m gross revenue pa. (Assume zero production cost after credits, and not the negative costs probable).

$203m pa - D&A&I & Company costs say $20m x 70% = $128m pa A/T.

If TRO has say a 500,000 tpa plant, and calculating the same way, would give $A157m A/T. Assume 60% share dilution, and EPS would be $157m/128m = $1.22/share.

At PE 8:1 say = SP $10 in round figures. NB This excludes any extra value for Lewis Ponds, Tailings and Exploration upside. SP would have to be discounted significantly to this as of today, IMHO as we are still at pre-feas stage. $3-4??

I am interested in comment, and in particular, what size plant is appropriate for Woodlawn - is 500,000tpa too small?