Based on that, i would be happy with anything under $1200AUD/t, particularly while we are still spending money on the ramp up. (domes, etc).
So would I UC , given our production cost was $A1231t in the Sept quarter at 58% recovery there is a good likely that would be improved with higher recoveries but as you say production based cost reduction is limited by throughput and will remain that way for this FY. The key of course is what we're receiving for our unallocated concentrate and unlike costs, we have absolutely no say on that .
The PLL allocation for 5.5% is sold for around $A1206t at current exchange rates so around breakeven IMO although PLL pay for 25% of production costs. That leaves a net 50,250t at spot prices this FY ( thats derived from the high end of sales guidance of 180,000t less 113,000t with our 75% share of the balance) which IMO will be getting around $A1600t, we will have to wait for the Dec quarter for that to be revealed. The exchange rate is becoming a big factor itself at the moment.
So relatively slim pickings at the moment which ever way you look at it, but with over $A200m in cash and no debt we are in position to weather a good storm , very thankfull the BOD had the foresight to go to the market for $200m when they did, things would be look very serious now without that cash and burdened with debt...they have been there before and are determined not to repeat it.
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