Substitute current values for CU and Au to get an idea of the concentrate value, moisture content must also be taken into account as it is 8% or 80 kg of water per tonne.
There are many other deductibles as well such as freight, smelter charge etc.
It will take about 12 tonnes of ore to produce 1 tonne of concentrate at 30% and if gold recoveries are good they may get (.5 grams per tonne) they may get 6 grams of gold per tonne of concentrate.
Typically the gold is worth just as much as the copper
Typical pricing clause – Copper
The price of the raw materials shall be the sum of the values of the payable metals less the sum of the deductions.
Buyer shall pay for 96.65% of the final copper content, subject to a minimum deduction of 1.0 unit at the official LME Grade A Settlement Copper Quotation averaged over the quotational period.
Example) For a concentrate with a copper content of 30 % the payable copper value is:
30% x 96.65% x 7,000 USD/t-Cu = 2,030 USD/DMT
Typical pricing clause – Gold
The price of the raw materials shall be the sum of the values of the payable metals less the sum of the deductions.
Buyer shall pay for 97.50% of the final gold content, subject to a minimum deduction of 1.0 g per DMT, at the London Morning Quotation averaged over the quotational period.
Example) For a concentrate with a gold content of 40 g/DMT the payable gold value is:
40 g/DMT x 0.0321 x 97.50% x 800 USD/troz = 1,002 USD/DMT
AVB Price at posting:
7.9¢ Sentiment: Hold Disclosure: Held
