dj_420. If PH produces: 100k of Cu @ $US3000 per tonne = $US300m p/a 80k oz of Au @ $US800 per oz = $US64m p/a Total revenue = $US364m Once fully operating on that revenue Profit around;
cost of production Cu = $1.00 lb Sale price (assumption) = $1.40 lb .. profit on $US300m will be $US85.
Cost of production Au = $US543 oz (based on YTD figure Sept08) sale price (assumption) = $US800 oz ..profit on $US64m will be $US20.5m
TOTAL PROFIT(Cu & Au) = $US105.5m Assuming exchange rate of 0.67 to $US PROFIT = $AU157m
At copper price of $US1.80 lb or $US4000 per tonne Revenue = $US400m profit = $US177.8m (assuming $1.00 Cost of Production) Assuming exchange rate of 0.67 to $US PROFIT = $AU265m
OZL Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
