go long for copper and gold, page-5

Thanks Missionx to highlight the importance of C1 cash cost.

I have a quick look on PNA's growgth strategy in Chile and they look interesting:

IMO, the areas is with multi-commodity copper project, with significant credits of gold, molybdenum, (and cobalt ??) which will provide a competitive grade advantage to copper production costs.

- Interesting alliance with Codelco, the world’s largest copper producer

Inca de Ora Copper-Gold project:
They talked about project Capex circa US$75M, which is reasonable ... we're not talking here of very large Capex project with US$billions (see comparison with MNC).

Some Indicative project fundamentals:
- Competitive cash cost : C1 Cash cost target US$1.00/lb after precious metal credits
- Low strip ratio
- Lower cut-off grade
- Processing both oxide and sulphide mineralisation
- Possibly defer molybdenum processing
- First 3 years of production to benefit from high-grade supergene ore
- Base case economic input prices: US$2.50/lb copper and US$1,100/oz gold
- Production target: 200,000tpa concentrate containing 50,000t copper,
40,000oz gold
- project benefit from excellent existing infrastructure
- + 10-year LOM
- Benefit from Phu Kham experience

Cheers,