Pan is up about 36% since the day you provided your company thesis from only one ‘quarters reporting’ that also happened to follow a restart.
I’ll better help you understand the commercials:
C1 Cost will reduce to target rate as the mine ramps up to nameplate in FY24 or perhaps sooner. What about if production can be pushed past nameplate subject to new discoveries or additional mining fronts thereby further reducing cost as output is increased?
As I understand, the sustaining mine development cost will basically drop off after year 5. For example next year this cost may be 20m to 15m.
Corporate cost is estimated at about $1.00au per pound (Macquarie uses a similar estimate).
Drilling & interest are also calculated separately but costs a negligible.
Oil is already off by about 30% so Pan should see immediate cost reduction for shipping and transport. We may even see costs beat FY23 guidance.
I understand AIC is sub $7.00au when fully ramped up (not including corporate, drilling & interest costs).
Victor is a great operator who will get the mine to nameplate first before looking at cost synergies to bring down the AIC even further.
Have faith my dear friend, I am sure if I had the time to go through your HC history then I would be able to highlight some skeletons your currently invested in when we benchmark against Panoramic
(20min delay)