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08/03/18

20:00

Post #: 31630624
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Originally posted by Jongerd ↑

Hi Szaba, I guess we are all interested in what Rex is now worth being at the "shovel ready stage" and comparisons with other copper mines is very pertinent but the difficulty is in comparing apples with apples (or grapes with grapes in SA).

Maybe a little speculative but there is some direct output comparison between Hillside and Carrapateena. Rex's original PFS in 2012 at 70,000tpa of Copper (0.6% Cu) exceeded Carrapateena's planned 65,000tpa (1.8% Cu). In the current bullish climate for Copper one would assume that Rex's mine development plans would at least make provision for expansion to the original PFS levels?

What I found interesting was Carrapateena's estimated cost basis ( AISC) of US$0.99 per pound for deep mined hard rock. Rex's throughput to achieve comparable output is a three times multiple but capital and operating costs (open cut vs. deep hard rock extraction) would be much lower and I wonder with the great advances in reducing mining costs just how much Rex's AISC will be?

Coming to "what is Rex worth now?" - Difficult (impossible?) for a non-mining/non-finance provider background shareholder to say what Rex is worth now but if Rex were to plan for a Copper output 70,000 tpa, even at an AISC of US$2lb (high?), a Copper price of US$3lb (low?), then down the track (not sure how far down) Rex's ANNUAL dividend would many times exceed its present market capital. - Maybe somebody with either mining or mining finance background can comment?

I look forward with great hope to announcements when the PEPR is ticked off.

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Any potential for cobalt extraction from Hillside or is RXM the only copper explorer in SA without any cobalt in their copper ore ?
The 2011 EFS only mentioned copper , gold and iron but back then cobalt was hardly worth mentioning as prices were under $20/lb and heading south. Now you have manufacturers like Apple, Tesla and VW hanging around the mine gates trying to secure long term supplies.

RXM Price at posting: 18.5¢ Sentiment: Buy Disclosure: Held
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