FFX (ASX) Ann: Corrected Goulamina Drilling Update.pdf

Originally posted by Obe wan ↑

Lol, thats bollox. My previous company was burning 60 million litres of diesel per year mining and hauling; I run haul calculations and pricing all the time, so I ain’t talking out of my ass. If you think BGS can haul to port for $50 per tonne then you have rocks in your head.

Let’s keep this simple . GCW in Mail is 36 tonne, so your payload is at best 20 tonne; id factor that at 0.75-0.8 for the sheet roads other wise you’ll be flipping trucks like underpants after a night on the vindaloo; no point in fully loading trucks so drop it to say 18 tonne. If you wanna check , Mali has one of the highest fuel cost in the world and in trucking labour ain’t the dominating cost. Let’s take 2 mtpa...divide by 6 to take to concentrate = 330,000t / 18 tonne load= 18300 loads / 365 = 50 loads out of site per day. Let’s just slap a figure of 500 km to where ever you wanna go...thats 1000km round trip..1000km including rest time and bullshite road condition time etc is going to take 2 days minimum absolute minimum . Thats 100 trucks cycling + 10% offline (maintainance numbers) = ballpark 110 trucks.

What happens when supply starts to counter demand, reach equilibrium etc??? Price starts to fall. The transport cost per tonne for BGS is likely to be around $350 per tonne fwiw , road conditions are poor. medium to long term lithium pricing is what needs to be considered when transporting concentrate...falling price with high transportation cost is what smothers profit.

In summary bother BGS and AVZ need to be producing carbonate / hydroxide at site. AVZ has the tonnage and the extraction rate just by considering 100-200m intercepts to evaporate the capex cost of a chem plant....does BGS.....personally I can’t see it; but as they say “each to their own”

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Is that GCM or GCW...Barney can't tell??? Oh wait, yes he can.... It's Gross Combined Mass or Gross Vehicle Mass... And 60 million litres of Diesel isn't much.... Barney used to use around 1500 litres for a trip from Adelaide to Perth or versa in his Road train... Two up he'd cover the 2765km traveling at 1240rpm doing 89km n hour in 32 hrs in his 580hp euro 4 I-shift Volvo...Barney learnt share investing on those trips... listening to podcasts while driving the nullabor@ 3am dodging camels....
So Obe... The transport costs aren't gonna be that problematic...if worst comes to worst, the freight will be transported by road to the nearest inland hub and packed into containers...Capital was only 200ish KM away, so don't come on here sprouting the knowns, when you haven't the faintest...
PS...let's not get into a slinging match about each of those African Lithium projects...That huge "world's biggest deposit" certainly is big, but one can only dig the same amount in an hour with an excavator...so it doesn't matter how big one is...it's about how profitable one can be...Earnings Before Income Taxed "EBIT..." And last time B read, Mali had tax incentives for new mining operations...kinda like a 3 year head start to profitablity! And one can't forget the $64-65au per oz gold royaltie too!!! That's gonna pay admin and some exploration costs while not diluting existing share holders... How many shares again??? Under 1/4 billion shares totally diluted...geez that's something to be proud of being a BGS holder!!!

To use an analogy...
having the biggest rig on the road doesn't make you the most money...it gets the repeat customers because you can provide the service. But a small puddle jumper 4 wheeler isn't as glamorous, but it's over heads n running cost counter the size and one doesn't have to kick 36 "sets of" wheels.

And the Chinese aren't gonna pay retail for the world's largest deposit...they have been known to bleed Companies down by delaying the purchase all the while the holding Companies cash gets evaporated..Which is why Barney once said to @malay he'd rather not get the Chinese involved in a deal with BGS!!