Mmm... So on one hand you are saying it is more expensive to...

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happy Hippy

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03/08/15

08:12

Post #: 15738515
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Originally posted by Kalenn ↑

Chi, a couple of quick points; under ground at PB will most likely be more expensive than the open pit at AN but not "much more expensive". A ball park of 20% more expensive for the underground mining section of the process is a reasonable starting point for calcs according to conversations I have had, just approximate of course. While it is more expensive to dig under ground they are not going to have to move millions of tonnes of non-ore bearing rock to get at the resource as they would in an open pit scenario. This saves a lot of expense.

Money, A$68 million as at June 30th. US$4 million added by Blackrock during July. US$8 million still to come from Blackrock. Total mine spend including contingency US$60 million of which a nice chunk has already been spent. Keep in mind that the deals they are considering for off-take typically offer 90% of the money upfront once at the ports ( FOB). That is, the first shipment will see money arrive in their accounts. Hence, the money is not all that tight. Contingency hasn't been touched yet and large sections of the build expense are set with fixed price contracts. It is possibly, given the external macro influences and the rigorous planning that has gone into this, that contingency will not be tapped.

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Mmm...
So on one hand you are saying it is more expensive to mine undeground yet this saves a lot of expense as you do not have to move millions of tonnes of non-ore bearing rock.
From that statement you would think underground is cheaper. Your rose coloured glasses get rosier every day Kalenn

AVB Price at posting: 6.9¢ Sentiment: Hold Disclosure: Held
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