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If you look at page 3 in the presentation whose link I posted at...

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persistentone

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25/01/18

18:39

Post #: 30578827
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Originally posted by dyeman ↑

Don't forget to factor in when the figures (e.g production volume) relate to the entire operation vs when they only apply to ORE's 65% share (e.g. revenue and profit).

I would certainly assume all the plant operating costs (less interest and depreciation) are included in EBITDA, and as you say, some of the costs would be relatively fixed regardless of whether the plant is operating at two thirds capacity or full capacity. Other costs such as reagents would be proportional to production volume (except that we know that suboptimal pond concentration did cause increases in some reagent use).

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If you look at page 3 in the presentation whose link I posted at the start, they are not including the factory costs in a calculation of EBITDA. They actually appear to be factoring that into their calculated *cash costs*, and then whatever additional costs lead to EBITDA are small and incidental.

ORE Price at posting: $6.89 Sentiment: Hold Disclosure: Not Held
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0 Great analysis

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