re: Ann: Preliminary Cost Estimates - Rossing...
Hi All
I was expecting a production cost closer to US$20/lb.
However on closer inspection of the report I see under section 7. Capital Cost Estimate "Mining costs have been omitted from the capital cost estimate, as a total mining cost of US$2.10 per tonne has been defined which includes capital and material movement during the course of mining.."
In section 8. Operating Cost Estimate, the Annual Operating Cost table has Mining Cost (includes capital). I assume the amount of US$12.6/t* of ore, includes the above amount of US$2.10 per tonne.
Excluding these capital cost, this would equate to a production cost of approximately US$21.5/lb (as the production cost per tonne is almost the same a the production cost per lb).
These are after all only preliminary costings and hence are as usual with EXT's announcements on the Conservative side.
Regards
Steve
EXT Price at posting:
$7.65 Sentiment: LT Buy Disclosure: Held
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