cost of production for New Business Plan

A question nagging me is what could our cost of production be for the new business plan:

Firstly what do we know:-

The higher the grade of the feed stock into the beneficiation plant the lower the cost of beneficiation


http://www.stocknessmonster.com/news-item?S=NTU&E=ASX&N=582174  (see page 4)

with the open cut feed NTU will be feeding in 1.19% grade TREO into the beneficiation plant
http://www.stocknessmonster.com/news-item?S=NTU&E=ASX&N=751759  (see page 10)

now the above is to produce a concentrate of 33% TREO from beneficiation processing. The new business plan only requires a 20% TREO to be beneficiated. A 20% TREO optimises recoveries. There for it's logical to conclude the beneficiation to 20% TREO is costing less than $6,000 ton, or $6 per kg.

this concentrate is then fed into the hydromet plant to produce a mixed rare earth carbonate

we know feeding in a concentrate of 30% TREO costs $4.40 per kg

http://www.stocknessmonster.com/news-item?S=NTU&E=ASX&N=626021  (see page 3)

obviously the above is based on different grades (30% verses 20%) but it is an indication of the per kg cost of beneficiating ($6kg) and hydroment ($4.40kg) processing

to that we need to add open cut mining costs (at a guess $3 kg) and admin costs (at a guess $3 kg)

as for revenues - that should be revealed when off take agreements put in place and disclosed

Sentiment: Strong buy