I am becoming confused by the conversation on hotcopper.The...

I am becoming confused by the conversation on hotcopper.

The calculation seems far simpler, than what is being discussed. However, attaching numbers to the variables below seems the main issue.

There are four variables:

• mined dirt expressed in total tonnage
• constitute rare earth materials, expressed as a decimal, per tonne of dirt
• extraction cost + other costs
• price received by IXR

Total Revenue = (total dirt containing rare earths x rare earths constitute expressed in decimal) x price of rare earths paid to IXR

Gross Profit = Total Revenue minus Total Cost (extraction costs + other costs)

For example, lets assume that:

Total Revenue = 78,000,000 tonnes x 0.000810 (REE 810 ppm equates to 0.081%)
= 63,180,000 kg (63,180 tonnes) x USD 35/kg = USD 2,211,300,000

Total Cost = tonnage x (extraction cost + other costs),
= 78,000,000 tonnes x USD 10 / tonne = USD 780,000,000 + USD 30,000,000 (rare earth plant plant)

Gross Profit = USD 2,211,300,000 minus USD 810,000,000

Gross Profit = USD 1,401,300,000

My questions are:

• What is the percentage of rare earth material per tonne of dirt? That is, is it the aggregation of all the rare earth elements?
• What is the cost of extraction and other costs for each tonne of dirt mined?
• What is the total price received per kg by IXR?

Bos