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.
- Forums
- ASX - By Stock
- Ann: Quarterly Activities Report
Yes, cash flow positive requires them improving the...
-
- There are more pages in this discussion • 38 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)