scoping study result vs upcoming pfs..., page-10

The scoping study is dated and partly illusionary.I very much doubt that the mill will be running at $16000 a tonne tin price

The thing is this, there are two critical factors in running the mill; one that it must be profitable and two that when the decision is made to operate it, it must keep running. It cannot be decommissioned and recommissioned on a daily, weekly or monthly basis. The workforce needs security of employment for example.

It is a big decision to close a mill after it has been commissioned and one needs to ask the question, what would cause it to close? Lower grades than anticipated, higher costs than anticipated and lower revenues due to a low tin price. All three must line up together for successful mining. What sort of strategy can the company employ to keep it open? Clearly to cut costs if that was possible or high grading( putting through the highest grades) which makes economic sense. At what stage would the company consider this option? My gut feeling is about $17000 a tonne. From here you can deduce the all up cost breakeven point approxamately. You would add another 20% to that price ie making it I would think between $19000-$20500 in that order for the company to achieve its growth plans.

Please note this figures are rubbery and the PFS should shed a better light on this.

Further Iam a tin bull and I do have plenty of this stock.