Tin produced last year (50% share) 4730 tonnes. Assume 5000 tonnes this year as result of Area 5 completion, with costs up roughly 10%. This assumes costs rise despite the per tonne reductions from Area 5 completion, reflecting labour cost increases. Current tin price of $US 23500 per tonne is $A34400. Rev $172m Costs $110m Gross profit $62m Interest income +$2m Admin $4m Finance nil Net profit $60m (tax losses available $42.5m) So $15m a quarter. Note this is not cash flow as there will be capital spending (for example $9m on Area 5 to go). It also suggests in accounting terms we are break even (at the current exchange rate) down to a tin price of $US16000.
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