Prominent Hill 2018 ore reserves have a 10Mtpa float plant cost...

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ozbucheron

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22/01/19

18:51

Post #: 37190971
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Originally posted by ceh2009: ↑

Yes, cash flow positive requires them improving the metallurgical recovery. Hopefully improvements in recovery don’t require additional grind time, more grinding media or more reactives.

42.5% is the recovery based on them achieving between 40% and 45%. A couple of one offs at 49% I disregard.

So 42.5% recovery of 2.95% grade times $US2,500 per ton times 85% smelter payable = $26.64. That figure is not arguable.

The smelter charges $150 per concentrate ton so if the ratio is 20:1 that’s $7.50 an ore ton. That leaves $19.14.

No one is buying FOB Australia so they need to pay ocean freight. That makes it a loss right there before you’ve considered cost to mine, corporate overheads, interest on debt, actual processing costs.

You can not process a ton through a flotation circuit for
under $US10. No one does.

At these recoveries there’s simply not enough in it.

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Prominent Hill 2018 ore reserves have a 10Mtpa float plant cost of US$11 per tonne including site admin (US$1) and ore rehandle (US$1.20) and they have to crush and grind pre-float.

Con ratio = con grade / (head grade x recovery) = 47 / (2.95 x 0.425) = 37

Smelting + transport = $250 say / 37 = US$7 per tonne of ore

Plant costs, no rehandle, no crushing, minimal pre-float grinding = US$9 per tonne of ore

Over to you.

NCZ Price at posting: 67.0¢ Sentiment: Hold Disclosure: Held
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Prominent Hill 2018 ore reserves have a 10Mtpa float plant cost...

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