copper price & mg14

I have just done some calculations on MG14 at Aus$3.84 per Lb.
The last PFS I saw was based on US$2.70 per Lb at exchange rate of 86 cents which is Aus$3.14.

Over two years on 18700 Tonne at 67% recovery the capital cost of $41.7M would be paid back with a residual of $1.3M.
At 80% this residual was estimated at $17.3M.

At Aust$3.84 we have an increased income of 23%.

I have assumed taxes have been taken out of these figures.

At 67% recovery this would be 18700*.67*.23*$8382(Aus per tonne) = $24.1M (BEFORE TAXES)plus $1.3M
at 80% recovery this would be 18700*.80*.23*$8382 = $28.8M
(before taxes) plus $17.3M.

This looks pretty good even without Windabout, and highlights how undervalued Gunson is.

Nickel at the moment is the highest since 2007 at US$24400 per Tonne so lets hope Fowlers Bay hits something.

Talks IMO must be very close to finalisation and I am looking forward to a prosperous 2011.