groins,
The costs you are talking about are called TC/RC costs and are a component of the C1 cash cost published in the qtly report of most resource companies.
C1 cash costs are worked out by (generally)
mining costs + mine processing costs + transport costs plus smelter costs - byproduct credits = total C1 costs.
They are normally expressed as US cents per pound.
TC/RC costs are running at about $56/5.6 per tonne of concentrate.
C1 cash costs are generally regarded as the measure to compare mining companies that mine the same commodity.
For Aust mid tier copper miners, the March 2011 qtly C1 cash costs were (in USc)
OZL 70.3
PNA 90.0
EQN 193
ABY 229
The difference between paper reports i.e. (DFS) and the reality on C1 cash costs can be very very great. EQN had predicted a C1 cash cost in it's DFS for Lumwana of 60c. It is exceeding that by a factor of 3.
Until the numbers come in from production, I would be wary of using the costs from a report that is a bench top study. If you do use them, then applying a conservative discount may be advisable. There is a high probability the original numbers may not come to realisation.
HT1
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