To get $40mill EBIT TMR needs to make nearly $1.50 per pound of contained copper. If they reach the targeted costs in early 09 and copper stays about where it is now then they'll probably get there. They don't receive the LME copper price for their product because the product is concentrate not metal. It has to be refined. Approximate costs for this were posted by (from memory) Paul100 2-3 months ago. From memory I think the company would likely receive 85% of the copper price but that is from memory.
It is worth noting that the company touted $50 EBIT in presentation after presentation for 6 months. I hope they come up with some new slides next time they do a roadshow or make an announcement.
TMR Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
