It's not just higher grade, it's also dependent on the metallurgy of the deposits. Which will determine the flow sheet.
BGS was able to reduce transport costs by removing the hybrid road/rail transport and just stick to road. Changing transport modes (from road to rail) results in higher costs due to having to pay for storage and handling at the exchange point.
AVZ will have a huge deposit, close to surface and should have cheap processing. But extracting the "tin credits" will result in a more complex flow sheet and thus, higher capex and ongoing maintenance. It's not as clear as just multiplying the amount of tin in the deposit by the current spot price and subtracting that from the overall costs.
Remember, its not free to process tin. Although it may reduce some costs, it will also cause the cost of processing to rise at the same time. It's not a 1 to 1 scenario.
AVZ Price at posting:
12.0¢ Sentiment: None Disclosure: Not Held
