Ann: Good Metallurgical Results from Makuutu Eastern Zone, page-70

First 70 Last

Share
Profile

Follow
setfire2thehive

3,940 Posts.

12557

09/08/20

12:26

Post #: 46406210
Share
Originally posted by Boston007 ↑

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

Expand

But this is largely in line with my calculations. which delineated 100M USD profit per annum across 13Y mine life (based on 78mT resource)

Mine life extends with resource size..
This is what i have said from the get go.

The conversation is confusing because chinasyndrome presents random figures and passes them off as another then i've tried to spend time explaining how you turn these random number back into something meanful. Or alternatively compare them to another project.

You're right that it isn't that hard revenue $27USD/kg opex unknown but assumed 6-8USD based on biolantanidos. 5000TPA = 100mUSD.

The detailed workings explained what drives that 27USD. i.e. how did the company compute that as a function of recovery and concentrate level etc etc.

SF2TH
Last edited by setfire2thehive: 09/08/20

IXR Price at posting: 1.1¢ Sentiment: None Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

3 stocks with antimony news on Thursday

CU6

Clarity progresses SECuRE trial with positive safety results

CHN

Chalice jumps on Putin nickel export ban threat – but then there's bad news

DXB

Dimerix begins recruiting young kidney disease patients in Mexico for Phase 3

GTR

GTI extends uranium mineralisation at Lo Hema through development drilling