I didn't bother to add the 20,000 tonnes of unshipped ore due to the fact that $2,863,000 was spent in production in the June Qtr. I just cancelled each out to save calculating.
OK to be more accurate
ADD $2,863,000 + $8,924,000 = $11,787,000
total tonnes 27,000 + 27,000 t +20,000 = 74,000 tonnes.
$11,787,000 / 74,000t = $159.28/tonne. So its about $5/tonne cheaper in cost.
Still Losing $60/tonne
Add in staff and admin costs to produce the 74,000 tonne = $2,776,000 or $37.51/tonne
AISC costs would be about $159.28/t + $37.51/t = $196.79/tonne cost
(The income for 2 shipments of 27,000 tonnes each = $5,443,000 / 54,000 t= A$100.79/tonne)
Income is $100.79/tonne - costs $196.79
SO TOTAL LOSS /TONNE = $96
Therefore cost of producing is twice the selling price. Sounds like a great business to me.
E25 Price at posting:
$1.72 Sentiment: None Disclosure: Not Held
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