Ann: Cape Flattery Silica Sand Project Production Target, page-36

Hi Malcolm D, Further to your subject post I noted a recent ABC Rural article "Zinc prices rising on the back of demand for renewable energy equipment" which included a reference to solar panels:

"Since the beginning of 2020 the price of the PV-grade polysilicon used in solar panels has more than quadrupled"

Metallica has confirmed that test results indicate that Cape Flattery sand is suitable for solar panels which makes me very interested in the impact on profit if even a small portion of its sales were of a quality suitable for solar panel manufacture.

Plagiarising your "back of beer coaster calculations" which arrived at a A$39M annual profit based on annual sales of 1.3M tonnes with profit averaging A$30 a tonne I wondered what impact on profit would occur if say 100,000 tonnes (or 7%) of output was treated to of a quality suitable for solar panel manufacture.

- I assume a solar grade silica sand would as indicated by the referenced ABC Rural article attract a premium price so a conservative price should be US$140 (for 150-200ppm Fe203) or A$200 tonne and 100,000 tonnes would yield 77.400 tonnes of saleable product.
--- 77.400 tonnes x A$167 = A$12.9M
--- 1.2M tonnes x A$30 = A$36M
--- TOTAL OF A$48.9M annual sales profit.

If the above calculations are anywhere realistic then the current Market Capital is seriously out of whack and maybe some others might get out their beer coasters and recalculate the above just in case my calculation assumptions are also out of whack.

If nothing else I hope that this post indicated my expectation that the forthcoming PFS will be indicating the potential for a market that goes past 100% of product for the basic foundry and run of the mill glass. My understanding is that metallurgical studies are under way to confirm the potential for meeting the quality of the solar panel market.