Not so sure on that - from the last quarterly:
'The marginal addition in C1 costs due to lower metal production was partially offset by a slight reduction
in overall treatment charges (TCs).
The full effect of lower spot TCs is yet to flow through to the cost-base for New Century, with the
September quarter shipping schedule requiring the majority of shipments to be delivered under existing
long-term contracts (at a discount to the benchmark TC of US$299.75/t) as opposed to spot TCs which
progressively dropped to US$110/t during the quarter (see Figure 1).
New Century anticipates further reduction in average realised TCs in the December quarter and into
2021 (providing a strong tailwind for C1 costs), with the average TC for the September quarter being
US$259/t, however the Company’s most recent signed spot TC shipment contract (for December quarter
delivery) was US$157/t.
Lower spot TCs, combined with a likely significant drop in the annual benchmark TC in 2021, will provide
a significant C1 cost benefit for New Century. For example, a US$100/t drop in average TCs represents
~US$0.10/lb on C1 costs, which is equivalent to US$24.8 million per annum (~A$35 million) in additional
earnings based on an annualised September 2020 quarter production rate alone.'
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