HCH 3.70% 78.0¢ hot chili limited

$?Bill in a ? Life mine, page-3516

  1. 498 Posts.
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    Thanks heaps mate!
    I still have a few questions regarding the operating cost. Would it be better if we use the C1 cash cost or global production total cost of $1.46/lbs of copper. I think it would be more accurate. The C1 cash cost is already offset by gold and Molypdenum. However, in the PFS in 2016 of Productora, Silver was not in the contained mineral. Also they used these very low price assumption for gold.
    https://hotcopper.com.au/data/attachments/2591/2591422-884607fb4bba2506d6507bde58f3f24b.jpg
    Now we have 10Moz of Silver and the price of gold has rocketed. I believe the C1 cost is now close to $1.2/lbs if not lower. Copper price also looks very bullish now. The average price for 2020-2030 was predicted to be $3.5/lbs. But even if we go with $3.25/lbs. Our profit per ounce should be $2.05.
    So if I use that to compute using your 2046kt copper. The gross profit should be close to $8.4Bn.
    I think the above calculation is somewhat more accurate IMO because if we look at the table below, operating cost at copper of $3.25/lbs is only contributed to 54% of project revenue. But in your calculation above cost is around 81% of revenue.
    https://hotcopper.com.au/data/attachments/2591/2591429-436e1181db4cc71fc6438cf3ee0cd15e.jpg

    Now we have significantly upgraded revenue by increase the resource and LOM, reduce cost by adding silver and favourable PMs price. So IMO our profit and IRR should be much better?
 
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