Seeing that some are throwing around doomsday scenarios, here are some numbers that approximate the following scenario for Mt Cattlin, should this level of crappy environment devolve further and continue throughout next year.
Assumes:
ONLY 80kt SC produced
30kt from new ore
50kt from stockpiled ore
ONLY 80% sold (64kt)
$450/t selling price
Processing of stockpiled ore costs 33% more than processing new ore
Wow, even at the doomsday special sales price of
$450 per tonne, it'll only
cost us a few million bucks to keep the lights on at Mt Cat for the year, plus one-offs (capital etc). Call it $5m. Add some for fixed plant costs and call it $10m if you really like.
PLUS, we'll have the remaining
16kt of SC stockpiled (since we only sell 80% of 80kt in this scenario), worth a significant chunk of coin (
+$6m) for sale at a later date.
AAAHHHHHH P A N I C !!!!
How "doomsday" do you want to get..??
Those portraying the current lull - or it even worsening and dragging on through next year (or further) - as some sort of
absolute disaster for the company, haven't got anything tangible to base their doomsday calls on. I again invite them to correct or expand on my numbers to illustrate their case. Nothing so far. Very telling.
80kt
80% sold
450/t
...where's the catastrophic problem, considering the pricing in this scenario is not sustainable..?
