CAP - Facts and Figures, page-92

thanks rego.
iI’m with you, I don’t understand what insaf is talking about.
I’ve just been trying to explain the math behind the numbers.

indeed I’ve seen here and on MGT that a few think the stuff in the ground is high grade 68/70%. I blame the directors for what to me is misleading wording. You could read their Ann’s that they have high grade in the ground, which we know they don’t. It’s
16-20%. The high grades they talk about will be achieved AFTER beneficiation. That needs the large $ they are yet to raise to pay for the concentrate plant and equipment.

for those not clear on this, let’s take 100 tons of ore in ground. Let’s use 20% for this example. After they concentrate it, it will be a maximum of 20 tons of high grade concentrate produced. Actually it will be less, due to the process and concentrate %. So to know how many actual tons of that high grade they talk about, you take their total tons and multiply it by the grade in ground. As I said, simple, maths.

now this isn’t a Negative. I’m a big fan of both. They have plenty of tons to be able to have a very long LOM producing those lovely high grade concentrates. Indeed, I see these two as well insulated against the inevitable fall in IO price at the bottom of the cycle, as these resources produce at costs below that bottom of the cycle sell price.

hope that clears it up.

cheers,

ned.