Cmon jazz6868, thats not right, $4-$5uslb aisc costs for windarra to lienster ore...no way....$3.35 was the windarra dfs for its own built mill at W inc a $200M capex with debt funding.
these are the errors in your figures.
1. Back in 2013 aus to us$ rate was 1.00 to 1.00 parity, now its 0.78aus to us$, thats a drop of 22% in the aisc
2. Back in 2013 diesel, oil price was $110usbarrell, now $50 thats a halving of transport cost
3. back then pos was inc a spend of $200M for its own mill at W! Now its not needed as the mill is at bhps lienster, so $200M capex saved and NO DEBT!
4. The transport cost W to lienster is cheaper and half shorter than W to Bswan at $4.00 aisc 2014 dfs, so has to be much much less than 4.00
5. Mcmahon, forge, barminco, niwest all laying off workers in their thousands last few months, desperate for work, im told contract costs are 30-40% cheaper now than 2013, shown in SIR recent cheaper contracts with barminco
6. W to lienster aisc is $2.80 inmho
7. Dont confuse LJ BSwan DFSs
8. W capex already spent and fully funded, $6M spent in dec qtr , water level below 425m below ground and dropping as we speak, exposing ALL upper level shoots
9. G & H shoots & near surface open pit at those shoots found years ago n drilled in oct nov some 4 months ago results hidden n held back from market, equates to a substantial reduction in costs there maybe even halving of costs
10. W infrastructure, toilets, staff rooms etc all built since 1969 ex mill removed all there are ready to use
11. No debt needed to restart W, no loan interest in the costs, cn pd by shares to jbank
12. Instant large profit operation at W, many on here est $30M to 60M pa.
13. 80% bhp offtake kept by pos, much better than deals with wsa mcr pan even sir, undisclosed for good reason, prior estimates were 70% so pos keeps more profit, reduces aisc by another 15%
14. contracts offers for mining n transport renogotiated even cheaper and cheaper since oct 2014, another 10% saving there
15. Free water from W deeps, M tonnes of it
16. Tailings at W there since bhp, wmc operation built it up for 5 years prior to shutdown in 90s, sits there worth 6 months of processing from a bulldozer above ground operation, just add water
17. Gold tailings massive, gold mills all around esp at laverton, easy bulldoze above ground transport nextdoor to any one of the gold mills nextdoor wi 100km
To suggest a higher aisc cost on these parameters is just plain wrong maths. Even if it was thats still a 25% profit margin rather than 60%...this is the whole point...ITS STILL PROFITABLE at any NP above $4.00uslb, now 6.25uslb.
if the rodrigues withheld W DFS to lienster comes out lower than 4.00, say at 2.80...this will shock the market and POS will become the bankersand market darling...Disallowed i hear, 4 bagger hey 1-8 bagger says fredy, we dont know, but if pos cant rocket up then neither can SIR WSA DKM PAN MCR?
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