DSO ops at Mt Ida

Started a new thread to discuss near-term cashflow, i.e. proposed DSO ops at Mt Ida.

It looks like they're targeting 360-480kt ore per year. Matthew Boyes, in a 7 Nov * article, was quoted:

"We aren’t talking about digging the whole resource; let’s say a year’s worth of production at a rate of 30-40,000t a month"

"Why wouldn’t you? It’s fantastic money; ridiculous money. You’re making four times the money of an iron ore mine."

"And if we can do some cheap beneficiation, like running an ore sorter on site to get rid of some quartz, then we might be selling a 2.5%-3% product."

CXO received 951 usd/t for their 1.4% ore, the equivalent of 4075 usd/t for 6%. That's 52% of the 31 Oct BMX auction price (7830 /t), or 65% of the PLS Q4 contract price (6273 /t).

Let's assume RDT will just mine average grade 1.2% ore, and ignore the potential to select higher-grade ore, or the question of beneficiation for now. Using this formula and an AUDUSD of 0.70, 1.2% ore would've sold for 1165 aud/t.

So what sort of EBITDA might we be looking at, for 1 year of DSO ops? Opex is the big question mark. Considering MB's back-of-the-envelope is "four times more profitable than iron-ore mining", anyone want to guess what sort of numbers he's plugging into his model?

Rough matrix below, using the DSO discount formula from CXO's sale, showing EBITDA with opex ranging from 400 aud/t to 1200 aud/t:




Hope I got these calculations right!