AVZ avz minerals limited

AVZ production, page-36

  1. 2,202 Posts.
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    Simply because everyone knows transportation costs WILL be 'significant'.

    Again I'll point to BGS as an example. They are planning to truck their concentrate 1000km (road 617 for AVZ is 450km to rail ignoring the barge route) at $95/tonne. AJM is $39/tonne. Yet, BGS overall cost is lower than AJM according to their numbers. Why?
    Because transportation costs are generally not the dominant cost in a lithium mine. Onsite costs are, namely mining and processing (70% for AJM). BGS has a higher grade than AJM and lower onsite costs and this more than makes up for the increased transportation costs.

    AVZ has higher grades still, a far more homogenous deposit which will be cheaper to mine and potential a tin credits of $100 per tonne of each tonne of concentrate produced (which is the entire transport cost of BGS). So while AVZ will no doubt have higher transport costs than AJM and PLS, their production/processing costs (and thus overall cost per tonne) will likely be significantly lower. Especially so if tin is extracted.
 
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