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E25

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Cashflow prediction quarter, page-22

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yowie013

629 Posts.

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17/11/21

11:51

Post #: 57636863
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Originally posted by WhatsTheTip: ↑

I think you might want to rethink how you could lose 6% of weight as wet rocks dry out. Chipped rocks aren't particularly good at holding water, especially in hot climates. Rock chips are good for a number of things but absorbing water isn't one of them. Remember all the clay has been washed off already.

Also rocks and metals like Mn are a lot heavier than water. By my calculations, for an Mn ore/water mix to lose 6% of its weight as it dries out, it probably needs to start out at about 20% water and 80% Mn containing ore. There is no chance the Mn containing ore being trucked to to port hedland is nearly 20% water by volume.

I think why they need dry weight references is that when ore is crushed to a dust for lab tests, the increased surface area of the ore dust means it absorbs water from the air. This can distort the Mn % calculations so the Mn % is calculated on a dry weight basis.

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It's not about losing weight as rocks dry out. Every bulk commodity contains a certain percentage of water. Buyers don't pay for the water content of the product, so they pay on the basis of dry tonnes. In manganese, that is a dry metric tonne unit (dmtu) which is basically a 10kg parcel of Mn metal.

The initial e25 PFS announcement stated that:

I think utilising 6% as an assumption in my cashflow forecast is actually quite conservative.

LockyG101 - what do you think, based on your experience, is an appropriate moisture content assumption?

E25 Price at posting: $1.29 Sentiment: None Disclosure: Not Held
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