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77.0¢ sun silver limited

Largest silver play ASX, page-62

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toteman

687 Posts.

76

17/05/24

14:49

Post #: 73880448
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Originally posted by PhillW: ↑

I'm not sure how accurate this will be but here goes.

A possible calculation that may give a very rough ball park figure for the profitability of the operation at todays spot prices would be by using the figures supplied in the E79 2022 PEA.

Strip ratio 5.8:1 calculates out to 6.8 tons to move to get one ton of mineralisation x $US 14.40/T (mining + process cost) = US $97.92 or A$146.88.
My spreadsheet shows the value of ore per ton at todays spot price is A$146.50
So, today, the project is uneconomical. Then if you decide to add say 30% increase in costs for inflation etc, then the total cost rises from A$146.88 to A$191.

BUT, if you were to use a higher future PM price of $50Ag & $3,000Au the value of the ore increases to A$376/T which results in A$185/T free cash flow before tax, royalties, DA etc. If it's a 3MT operation, then that equates to A$555M.

Another option may be to guestimate the overburden only as a percentage of the resource size. Say its 1/3rd, then we arrive at A$118M to remove the overburden (41MT x US$1.90/T).

As I said, a guestimate at best.

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Thanks for the Calculations. At what price silver would you expect profit to be taken? I guess anything above todays spot prices

Last edited by toteman: 17/05/24

SS1 Price at posting: 60.5¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 77.0¢		Change -0.030(3.75%)		Mkt cap ! $65.39M

Open	High	Low	Value	Volume
77.0¢	80.0¢	73.0¢	$1.129M	1.479M

Buyers (Bids)

No.	Vol.	Price($)
2	35441	77.0¢

Sellers (Offers)

Price($)	Vol.	No.
79.0¢	31933	2

View Market Depth

No.	Vol.	Price($)
2	35441	0.770
1	15000	0.765
1	6666	0.755
2	72616	0.750
6	58328	0.740

Price($)	Vol.	No.
0.790	31933	2
0.795	5346	1
0.800	5346	1
0.805	3827	1
0.820	12000	1

Last trade - 16.10pm 07/11/2024 (20 minute delay)

SS1 (ASX) Chart