update on kanmantoo, page-14

MM,

I'm pretty sure that just because they are hedged at a copper price of $3.79 doesn't mean they get $3.79 per pound of copper in their concentrate. That is the price for copper metal, the buyer will pay less than that to account for the fact it's still in concentrate and needs smelting.

The price of copper metal is used as the benchmark for determing concentrate sales costs and discounts are applied from there.

Also, you would need to apply your PE calculation to net EPS, not gross Kanmantoo earnings. Net EPS will still be negative here because of the additional costs you mentioned.

HGO should be releasing a quarterly for this quarter, right? That presentation gave us the contained metal sold in concentrates for the quarter so if the quarterly gives us a revenue figure we should be able to calculate an approximate price per pound of copper that HGO receives. It will be less than $3.79 IMO.

I agree though, the trend is looking good. They will need to continue the improvement significantly though if we are going to see a net profit.