Are you talking “toll treatment” of ore …. or “ore purchase agreement”
Toll treating for a 3rd party would be on $ / tonne basis, essentially transport costs would be borne by the miner and CYL would only process on a campaign basis. The grade of ore wouldn’t be of any concern to Catalyst.
Ore purchase agreement would be settled on sample grades and blended thru the mill I would imagine, the grade, ex mine gate etc would determine the purchase cost.
If I was Patto at GBR I would have open discussions with CYL, may force Westgolds hand.
The upside, CYL have surplus capacity and the haulage route would be substantially all sealed highway. I don’t see any competition from RMS as they have plenty of their own ore sources.
Ann: Half year financial results, page-70
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