I'm sure we will get a drop-in at some stage saying that the A$5,000/t pit constraint is optimistic and other operations are using A$3,500 or A$4,000 pit constraints, but other than a zone in the NE of Dieman and a zone east of laterite pit the A$4,000 and A$5,000 pit constraints are very similar if not the same. The estimated cost of mining the ore was under that price the assumed pit mines all the modelled resource and the pit constraint chosen doesn't change the result (if its above A$4,000/t). The pit constraint chosen will matter a lot as the pits necessary to mine the ore get deeper and to the 200-300m depths some other operations are modelling.
It would be interesting to see how much of the deposit is still in an A$2,500/t model because that's the stuff you could mine and make 50% margins on.
TG6 Price at posting:
12.5¢ Sentiment: Buy Disclosure: Held
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