@mineralised
I’m just trying to work out how much cash this project is likely to produce with the metrics the company has provided. Perhaps someone has posted this before but I’ll give it a crack I find it’s the best way to learn.
So we have ~19,360T of copper per annum and 1500T of cobalt.
C1 cash cost is US$1.35/iL including cobalt credits.
It is looking like from reading through the announcements that this FS was done with a conservative mindset so going forward this is good.
The figures, please add comments of where I went wrong and any additions I should be wary of;
19,360T X 2200 (2200 pounds in a metric ton) = 42.6M
42.6M X $3 USD sale price copper = $127.5M USD.
42.6M x $1.35 cash costs = $57.5M
Its my understanding that the C1 cash costs includes all costs associated with the project from mining, processing, marketing, staff right through to product sales. An all encompassing metric.
“Under the Brook Hunt definition, C1 costs are direct costs, which include costs incurred in mining and processing (labour, power, reagents, materials) plus local G&A, freight and realisation and selling costs. Any by-product revenue is credited against costs at this stage.”
Excluded from the C1 would be taxes?
$127.5 - $57.5 = ~$70M USD or approx $100M AUD after c1 costs so you could be talking $70M AUD net after taxes for the copper component?
Now this is where things get a bit sticky it’s obvious I’m doing something wrong here next but I’m not sure what.
Cobalt $18 x 1500T (1500 x 2200 = 3.3M) = $59.4M
$1.35 x 3.3M = $4.5M which gives $59.5-4.5 = $55M USD
That’s around $75M AUD let’s say $55M after taxes.
Total after taxes of ~$125M Excluding any debt/offtake repayments for capex.
This seems too high to me I’m sure I have made a mistake somewhere...........
