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3.6¢ metallum limited

Shooshka. The 3$ per ton is correct= $1500 per month we are only...

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11/09/14

10:54

Post #: 13958050
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Originally posted by shooshka ↑

i would think anyone doing any (even entry-level) financial analysis of the costs would break out the fixed and variable costs.

Stoping and Development are variable. i.e. they are only incurred during removal of ore (more ore, more cost, less ore, less cost). That is overall though, of course the cost-per-tonne could well be higher (and i would expect it is) when lower volumes of ore are being mined and shipped.

Admin costs are fixed. $3/t was averaged over 5000t. So we know they are up for $15k per month in admin (i'm going to assume this is per-mine-site).

of course the cost-per-tonne goes up when the volumes are lower, as the admin costs are fixed so therefore become a higher per-tonne cost. but Zeff has said 2 things that are important, costs are so far on track with what they have indicated to the market, and that 2000t a month is break even level.

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Shooshka.
The 3$ per ton is correct= $1500 per month we are only sending 250t for 2 months = $3000/500 =$60 per ton adm costs plus mining costs. It does not matter what tons are on the pad. what you are paying out against coming in.An extra 500t this month will still be a lose.

MNE Price at posting: 1.8¢ Sentiment: None Disclosure: Held
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