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Ann: June 2017 Quarterly Activities Report, page-32

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Yeatesy

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01/08/17

23:30

Post #: 26227884
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Originally posted by Yeatesy ↑

Insurance claim for property damage will likely cover the full repair cost of the ils pond. Not sure if repairs would need to be completed beforehand or not.
Business interruption insurance claim should cover the loss in operating cash flow caused by the ils pond faliure. That will be a more complex claim than the property damage claim as determining the lost to production , what the cost of that production would have been, the financial impact on the rest of operations, etc, involes a bit of science and a hell of a lot of hocus pocus. In the quarter before the leak they did about 6500t at an operating cost of $1.54/lb (was about 10cents lower in the preceding two quaters). Based on the copper price since that time and the margin that likely should have been achieved over that time frame, then an impact of around $20m in operating profit to this stage is likely.
The property damage and business interruption claims may indeed result in substainial proceeds, unfortunately it seems they won't come soon enough to help avoid the capital restructure and likely substantial dilution.

Yeatesy

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Just double checked my figures. Rather than a $20m plus impact, more like a $40m plus impact to operating profit since the leak.

Yeatesy.

TGS Price at posting: 4.9¢ Sentiment: Hold Disclosure: Held
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