In the QR my recollection they said current revenue was approx A$34 k/t, but you need to remember we don’t get 100% of the LME price, BHP keep some for their smelting and refining efforts (not to be confused with the tolling costs for use of their concentrator). I am running with about 78% for payability.
So FY2022 revenue might be 8000*34000*0.78 = A$212 mm, before considering hedges.
They started the FY with 4666 t hedged at A$21 to 22 k/t. Assuming they close 2000 t this FY that reduces revenue by say A$25mm to $187mm.
So once you deduct our costs there won’t be an awful lot of surplus this FY on either profit or cashflow basis. But then what do you expect with nearly nameplate costs and only 50% of nameplate production?
EL
MCR Price at posting:
$1.43 Sentiment: Buy Disclosure: Held
