No I understand your basic point quite clearly, i have made reference to this in previous posts indicating that the head grade of MEI can mean that they can produce the same amount of REO concentrate say 4000tpa and process less tonnes (less opex cost). Or process the same tonnes and produce more MREC tonnes (more revenue).
here are 2 cited occasions where i state the advantages of the high head grade.
Post #:65372187
"Because MEI has a very high head grade, they could afford and be able to get away with lower recoveries. Essentially, at 4 times the grade you could have half the recoveries AR3 does, and you would still get double the amount of tonnes of TREO out the back end"
Post #:65381443
'All this means is for every kg of product sold that IXR's is more valuable. (key word - it's a concentrate tonne now read slowly)
Where MEI will have an advantage is on it's head grade. i.e. it could have the same size front end designed circuit and get a lot more tonnes out the back end.
Theoretically, this would mean MEI having potential for a lower AISC and/or more revenues (based on producing more tonnes).'
How about a third time i capture this. Post #:65384865 "For clarity, MEI's head grade mean they would produce more tonnes of product out the back end ifutilising the same designed circuit. i.e. IXR would have ~4000tpa @ $46usd/kg MEI could have 12,000tpa @ 30usd/kg."
To re-iterate, you have 2 options to compare.
1) You either fix the production rate at the front end. i.e.e 12.5mtpa and then compare revenues out the final product out the back (concentrate value x tonnes produced). (which is what i'm doing)
or
2) You fix the final product out the back end (concentrate value x tonnes produced), and compare the benefit of having to mine/process less tonnes due to an increased head grade.
Why do i prefer the former? because by comparing projects 2 ionic projects and fixing the mining rate, it allows one to have a better baseline for the capex and opex of the facility. i.e. if both projects are mining 12.5mtpa they are both processing 12.5mtpa you can better begin base lining capex costs and opex costs. Then the major variable is in the reagent and lixiviant costs.
I have for the benefit of those who prefer to have the mined/t rate display incorporated this figure.
I do not disagree that if the AISC for every tonne mined/processed is the same that MEI has potential to be more profitable. This is what i have suggested in the previous posts and haven't stated otherwise. Refer to bolded post cited which explicitly states this possibility. For example if the AISC fro both was $8usd per mined tonne then MEI would make a fair bit more money.
The only variable now is that AISC (all in sustaining cost) which is what i talked about and commended points made in Post #:65388923 which discusses the way in which the ammonium sulphate consumption could be re-used or reduced. Noting that it was ~2-3 times higher than the consumption reported for IXR. Again - not a urine contest, just indicating that this was one of the only elements today which would render its AISC cost higher on a mined/processed tonne. i.e. if $2-3 of the $8usd mined/t was reagent costs then we'd be talking and increase of $5-7 and that irrespective of the current reported ammonium use it still looks economic and possibly still more economical than IXR.
I am not promoting one stock being better than other and i have now proven, with cited evidence that i have both stated MEI could be more profitable and i've actually provided credible, tangible logic with supporting data to support that. Once people remove the notion i am trying to prove one stock is better than other and realise i am making objective comparisons to the difference you'll get that i know exactly what your point is - and simply indicating that i'm arriving at the same one but at the other end of the scale.
As for you last point basket price being useless. Head grade basket price - useless fairly well yes. And i've not denied that infact i state it here. Post #:65372187 and go on to explain the difference.
Concentrate basket value - not useless. That is fundamentally the way an offtaker or separating facility assesses what your saleable product is worth to them aka what your MREC sells for. If you think that's not factual, contact a downstream processing facility and ask that question and share the response.
(20min delay)