in the news, page-6

Hi legendary,

Perfect summation regarding the 'economies of scale' comments.

The advantage delivered by economies of scale is a low OPEX.

However, EQX already has a comparatively low OPEX without the need for a huge production profile.

In a global comparison, EQX has bypassed the need to achieve economies of scale that would lead to low cost production, because the figures show it will be a low cost producer @ 2mtpa.

When you already have an OPEX comparable to BHP/Vale and better than FMG, you don't need to be trying to produce 35-50mtpa to achieve economies of scale. You already have the main benefit, the low OPEX, without the massive CAPEX required for a 35-50mtpa operation.

I had the exact same thought process as you, but didn't bother posting because as you will find, these concepts aren't well understood by the people you are replying to.

Good luck!