Hi Fjear,
that depends on the economics. If the future profits justifiy the purchase price then t/o will happen.
Key input parameters to the DFS include:
Capital Cost Estimate
A$69 million
Operating Cost estimate (per tonne of ore processed)
A$84
Operating Cost / mtu WO3
After molybdenum bi-product credits
Assuming 75% recovery of WO3
US$115
Revenue / mtu WO3
Source Roskill October 2011. (After APT discounts)
US$360
Annual throughput of ore
400,000 tpa
Tungsten recovery
75%
Molybdenum recovery
77.8%
Scheelite concentrate produced annually
2,200 tpa
Molybdenum concentrate produced annually
1,250 tpa
Let's simplify and just go with $ 200 profit per mtu.
annual profit 80 million, current MC 30 million ( including AIM ), so it would make sense to take us over for up to 6c / 4p. Even if the set up costs for a mine would be 100m, after 2 years they would break even.
That's why I am buying, it is extremely undervalued. But explain that to the impatient and uneducated.
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