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What makes TMT capx low compare to TNG, page-6

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stevenlala

386 Posts.

17

05/08/18

02:02

Post #: 34725864
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Originally posted by thebeautifulstyle ↑

Low grade ore has been in the news for the last few years because of TNG
and the publicity they've gotten.
It takes a while for people to realise what low-grade resourse actually means.

If your ore is 1/3 pure then the capex is 3x more. Its pretty much that simple.

Another thing that people dont consider is the time aspect to mine and process low-grade.
Sure the much higher capex processing and digging will amaeloriate that problem to
a certain extent but not fully. Time is money and the slower you put out end product
the lower your profit.

And another, with low-grade you are more susceptible to risk from a falling
ore price, as the complicated processing is not so easily adjustable to a lower
production rate.

I can go on, (including the high pollution that low grade processing puts out), but I wont.
Let the market decide.

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Thank you guys for your patient and clear explanation. Appreciated.
I invest in a couple of uranium stocks. VMY have very high level of concentration but with very high level of CAPX compare with Australian peers. Anyone knows why? The depth looks Ok as well.

TMT Price at posting: 76.0¢ Sentiment: None Disclosure: Not Held
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