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15:28
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Originally posted by WhatsTheTip:
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Regarding restarting mining at Grants, there is only one obvious capital item and that may be deferrable. There is no Concentrator plant (its built and operating). There is no tailings ponds (they are built). There is no site offices (they exist). There is no moving equipment that needs to be restored to working order (its a pit in the ground thats on C&M not moving equipment). There appears to be no huge stripping exercise before reaching any ore - the stop point was price based/weather based (or getting rid of Lucas based) not because all available ore had been removed and the southern pit walls were at max slope. There is potentially the cost of buying diggers / haul trucks. Core's financial statements already show them using leased mining gear so leasing is their most likely route towards more mining equipment. IMO Grants restart has minimal capital costs before at least some ore is being produced.ROM to Concentrate conversion efficiency Pilbara's last half year statements noted a head grade of 1.3% (but I'll assume its just below the rounding threshold at 1.34%). PLS had recoveries of 66.2% meaning 1,000t of ROM to a 5.2% grade would generate 170.6t of SC5.2. Core's AR showed 28.8kt of contained Grants open pit ore reserve over 2.0Mt which implies an average grade of 1.44% (the stated figure was rounded to 1.4%). The December quarter recovery was 63%. On those metrics, if Core took 1,000t of ROM it would generate 189t of SC4.8 (or for comparative purposes 174t of SC5.2).
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Yeah I don’t get why some are saying it will take 12mths + to start recommencing mining ? .. it’s not like we are starting from scratch… surely Gareth & Co have done some homework? .. probably wanted to be rid of Lucas and told them it was in “ their best interests “ to sever ties as we don’t know if we’ll even start mining again … knowing full well they will when Spod price recovers ( and probably sooner than later )
(20min delay)