hi cost producers gain more from increase pric, page-19

Hello find8,

Yes obviously I am hoping and have been predicting TMR will be a much lower cost producer. Would be interested if anyone would know what an accurate industry average would be for CU C1.

Not only this, if the CU bulls are accurate, then when higher cost mines become more feasible TMR will become a lower cost producer on relativity alone.

If you have read some of my posts you would know I am as bullish on TMR as anyone, apart from that stupid SPP, but in regards to point one, 3rd party ore decrease from 46k to 20k at a decrease of 57%. Also with mined ore much higher this further reduces the ratio at which 3rd party ore is a factor, yet costs did not reflect this, although costs per ore ton did. Costs increased 2c from this quarter despite the reduction of 3rd party ore used. Point 3 of yours is the one that does it for me.

In saying this, 3rd party ore is a significant factor that I somehow forgot to mention in my $1.67 forecast, especially considering how much worse the results of this third party ore was than last time. If you disclude the grade of 3rd party ore as it is assumed grade is 1.5%, the 55% recovery alone on 11% of ore makes it more favourable for $1.67 to lower at grades of 1.5%, let alone the higher costs of it.

"yes TMR was a high cost producer (which was treating a percentage of third party ore)- but in reality is clearly a low cost producer."

Hasn't been this clear to everyone on the site but we all hope you're right (except perhaps Cadreelil heh heh)!