You obviously didn't understand what I said in my post.
I said C1 costs could go down as the project is ramped up to 1 million tonnes.
QUOTE
"When E25 ramps up to 1 million tonnes annually this could lower C1 costs, however its not till H2 2022, ( according to the announcement)"
The transport contract will have a clause to increase if the oil/diesel price goes up.
Whilst E25 has only produced 74,000 tonnes over the past 5 months, (15,000t/m) and does plan to increase this to 30,000t/m for stage 1, it could reduce C1 costs marginally, but it will only be in the order of $5/t as the material still has to be dug out, still has to be transported to the treatment site to be beneficiated and then transported to port. You need two trucks for every one used previously so costs don't come down much.
Even at full nameplate Stage 1, I see an overall loss of A$60/tonne.
Lets see what it is in 6 months time.
E25 Price at posting:
$1.42 Sentiment: Sell Disclosure: Not Held
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