ann out

WATERSHED COSTS SUPPORT HEALTHY OPERATING MARGINS
• Conceptual process flow sheet completed.
• Plant operating costs in line with pre-feasibility expectations for healthy margins.
• Operating costs estimated at A$40.96/t (US$134/mtu) for a production capacity of
1,180 tonnes WO3 of concentrate per year.
• Gross revenue per tonne processed is estimated at A$61.05/t (US$200.00/mtu of
concentrate).
• Detailed plant design work is underway.
• Design flexibility inbuilt to enable later expansion of both mine and process plant.
The expansion outline is there later in the ann as is a detailed cost breakdown.
The mood of the ann seemed +ve. I am not so sure. The margin seems a bit skinny to me. If the W price goes back a bit the margin would be very thin or even uneconomical. The W price is expected to go up or at least remain strong. A similar forcast for Zn a year or so back proved wrong big time , did it not.
Am I reading the figures correctly to say that expected EBIT would be (1180t * $20margin/t) $23600? What sort of a return is that?
I know that the pdn is expected to increase yearly to approx 6-7000tpa after 6 years. If my take on these figures are correct them T think I will be out of here!!
Please set me straight