Amended, correct $/lb,Certainly! Let's calculate thefinal payout...

Amended, correct $/lb,

Certainly! Let's calculate thefinal payout for Direct Shipment Ore from Storm considering it is sold to aChinese Copper smelter who is desperate for copper concentrate. Assume the spotsale will incur a treatment and refining charge (TC/RC) of US$90 per tonne (TC)and 9 cents per pound (RC). No mining, processing or shipment costs determined.

Here's the breakdown:

• Copper concentrate amount: 1 tonne (1000 kilograms)
• Copper grade: 50%
• Copper price: US$4.43 per pound
• TC charge: US$90 per tonne
• RC charge: 9 cents per pound (US$0.09/pound)

Steps:

Calculate copper weight:

• Copper weight = Total weight * Copper grade
• Copper weight = 1 tonne * (50/100)
• Copper weight = 0.5 tonne

Convert copper weight to pounds:

• Copper weight (pounds) = Copper weight (tonne) * Conversion factor (tonne to pound)
• Copper weight (pounds) = 0.5 tonne * 2204.62 pounds/tonne (conversion factor)
• Copper weight (pounds) = 1102.31 pounds (approximately)

RC Charge (USD):

• RC charge per pound: US$0.09/pound
• RC charge (USD) = RC charge per pound (USD/pound) * Copper weight (lbs)
• RC charge (USD) = $0.09/pound * 1102.3 lbs = $99.19

Total Revenue from Copper Sales:

• Copper price: US$4.43 per pound
• Total revenue (USD) = Copper price (USD/pound) * Copper weight (lbs)
• Total revenue (USD) = $4.43/pound * 1102.3 lbs = US$4,878.37

Total Deductions (TC + RC):

• TC charge: US$90 per tonne
• Total deductions (USD) = TC charge (USD/tonne) + RC charge (USD)
• Total deductions (USD) = $90 + $99.19 = $189.19

Final Payout:

• Final payout (USD) = Total revenue (USD) - Total deductions (USD)
• Final payout (USD) = $4,878.37 - $189.19 = US$4,689.18

Therefore, the final payout for the Direct ShipmentOre is approximately US$4,689 or AUD$7,327 for the copper metal value inStorm's one tonne of copper concentrate (grading 50% Cu).

You only need to delivery 213 tonnes of copper concentrate at 50% Cugrade to bank your first US$1.0 million in revenue at current pricing. By thetime Storm is exporting, the copper price will be sky high.

Note you still need to subtract the mining, processing (OreSorting-stockpiling), Royalty, Taxes and export shipment-marketing charges todeliver the copper conc to the Chinese customer!!!! The badly awaited PEA studyonce released will cover this aspect of the expenses.