Thank you Peter """" part of the confusion is everyone is trying to read too much into the numbers and second guess why dra split between fixed and variable – key points are:
- the $858/oz is the number everyone needs to focus on – that is a cost per produced oz of 4PGE – it takes into account mining dilution, grade, recovery, fixed and variable costs etc to produce (not mine or process) steady state 330,000 ozs of 4PGE per annum - this number is totally inclusive (and conservative) so it is more than likely to go down as operations commence
- there is no capex in Fixed cost
- run of mine is about 3.6m tpa
- difference is DFS is now final and refers directly to recovered, produced ounces
- your fixed cost example doesn’t really make sense – the key number is $858/oz
- capex depreciation is a little bit ambiguous because of the UG2 and what we do there (also because in the model we assume toll treatment of con, smelt and refining (massive spare capacity issues in SA at present – clearly this may change in future with jv partner)
- we are putting together a more detailed financial spreadsheet (with sensitivities) with DRA which we will make available on the website – should be this week
The project has serious legs and will only get better as PGM prices really come back (probably not for 2 years but perfect timing for our production coming on stream) – key with everything is JV and that is the immediate action we are finalising """""
Hope that helps – regards P
NKP Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
