The following illustrates what can be achieved with a plant just like Moly Metals. The grade being 3 times Molymetals grade, one should get the appropiate net profit result. However even though you could achieve the following, I would imagine they would go for a smaller plant and longer mine life.
Capex: $1 billion (same as Moly Metals)
Annual Production: 15 M tonnes (same as Moly Metals)
except the grade is 3 times higher at 0.168%.
This would give you 25,200 tonnes of concentrate p.a.
Revenue: 25,200 tonne of concentrate at $US60,000 per tonne = $1.5 Billion p.a.
Lets say $150M p.a. for annual operating costs.
Lets say anual amortization of Capex of $350M (I rediculously high write down over just 3 years)
Annual Net Profit = $1 Billion.
75% of project owned by RCH gives you $750M annual surplus.
Even if you don't use spot prices but the standard feasibility price of $US15 lb (feasibility price they all have to use), you still get a $US300M annual net surplus.
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