They are expecting a reasonable growth of 4-5% every year for fluorspar, so say it’s $625/T now projections see this being $656/T next year, $689/T 2020, $723/T in 2021! (Just estimates not exact figures) 800,000 tonnes a year forecast which means that they will mine 500 million dollars worth a year and then you do the math on the forecasts, so say they sell the mineral every year at 500 million dollars but wait they said (even IF the price of fluorspar had a reduction of 20% they would project a positive cash flow) which means if they sold at the reduction it would be 400m! So this is where it gets interesting if they are making a profit from selling at a 20% reduction rate that means the operating costs per year are below 400m and guessing that the minimum positive cashflow would be 10% I’m guessing it would cost 360M a year to produce 800,000 tonnes of fluorspar? If that is the case then 140M+ a year could be used to fund the vanadium project and make King River Copper a weapon
If I’m wrong about any of the calculations or minerals or anything please let me know the only thing I’m not certain on is are they mining 800,000 tonnes a year or 800,000 tonnes of fluorspar?
KRC Price at posting:
5.9¢ Sentiment: Hold Disclosure: Held
