Hi all,First of all some prelimanary DataEloise Mine produces on...

Hi all,

First of all some prelimanary Data

Eloise Mine produces on average 29.5% copper concentrate

Thus the Dec quarter production of 11,594 tonnes of concentrate equals 3420.23 tonnes of copper. Likewise the March quarter production of 16,024 tonnes of concentrate equals 4,727.08 tonnes of copper.

The average copper price at the LME for December quarter was $1.951 per pound and for the March quarter
it was $2.241

The average $AUS/US exchange rate was 0.7487 for the December quarter and $0.745 for the March quarter.

Now to the calculations.

What was good about this quarterly was that it gave us the Eloise production statistics for December allowing us to work out a total cost per pound. Now I have not worked out the value of the Gold credits but anyway for December:

Profit in $AUD for BRW = $2.1m
Hence profit for entire mine equals $2.1/0.3 = $7m
Add back tax at 30% = $7m/0.7 = $10m AUD Gross profit
Convert to $US at 0.7487 = $7,487,000 US

Now we now they produce 3420.23 tonnes of copper which is roughly 7,538,187 pounds of copper (by multilpying by 2204)

Thus their gross profit per pound is $7,487,000/7,538,187pounds = $0.9932

Given that the average copper price for the quarter was
$1.951 that implies a total cash cost of $0.9578.

Now I realise there is a number of factors such as timing of payments, Gold revenues (which should be much higher) but extropolating this cost per pound for the March quarter gives:

16,024 tonnes of concentrate equals 4,727.08 tonnes of copper produced

Average price of copper equals $2.241. Using the cost of $0.9578 per pound leaves a gross margin of $1.2832 per pound

4,727.08 tonnes equals 10,418,484 pounds of copper. This times $1.2832 per pound equals a gross $US profit of $13,368,999. Convert to $AUS at $0.745 equals $17,944,965 AUD. Take tax off at 30% = $12,561,476

Amount attributable to BRW (30%) = $3,768,442 for the March quarter

Now things to note
- timing differences may affect this calculation
- I have made no allowance for the gold production
- The cost per pound should be less in March due to the greater production over the same fixed costs

But remember this profit is at an average price of $2.241 per pound - The current price per pound is $3.333!

Appreciate any feedback

Cheers

J.