Further to the discussion about cut off grade. Oz minerals 2021 MRE cuts off at an NSR $49/t which tells us a lot about their mining, processing, administration and sustaining capital costs but nothing about the appropriateness of the quantities of ore in the MRE given the current price environment.
One has to look deeper into the fine print to discover what the price assumptions are. When you do that and find the cut off is based on a CU price US$ 2.91 and an exchange rate of 0.73 cents (A $ 3.99) you know that the MRE has a lot of upside at current prices.
Wouldn't it be more enlightening to shareholders if they cut to the chase and stated that the MRE was based on a cut off cu price of A$ 3.99.
It would be extremely informative if they went on to give a couple more estimates with cut of at appropriately higher and lower prices given the upcoming price forecasts.
Ann: Portal Cut for Kanmantoo Decline Commences, page-39
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