insight into profit analysis: offtake shipment, page-7

In response to shakespeare,

I will try to answer your questions as well as I can…if anyone else has a better interpretation please feel free to chime in.
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Question
Do you know what constitutes smelter charges?

Answer
Smelter charges are simply the cost of smelting or treating the concentrate produced by the HZCP JV. Treatment is required to extract the contained metals within



Question
Does it include all costs at Hellyer site?

Answer
Short answer ..no. See comments below.



Question
Why would purchaser deduct Hellyer costs from payment?

Answer
I don’t believe they do.
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Comments
I agree that it is a bit confusing because up to now Intec have lumped all costs together in their presentations, including smelting costs and Hellyer site costs. The combined costs for the project (Intec’s share only) comes to $25m if we use POZ @ 90c USD per lb, with costs increasing to $30m if POZ @ $1.50 per lb. Apparently the costs rise with the price of zinc…don’t ask me why but that’s the way it is.
Broadly speaking, profit can be calculated as follows
1. Revenue (with smelting costs already deducted, calculated by complex formula)
2. Less Hellyer site costs (everything else not included in 1.)
3. Remainder is profit

Unfortunately I have no idea of what the Hellyer site costs are, so maybe someone with a bit of experience could provide a ball park figure???

All the best
Boomer