It would be nice if the company could get into production in 2014 to take advantage of prices while they were above $100p/t.
If you use the consensus forecast of $120p/t in 2014, an OPEX of $50p/t and a production level of 500,000t/pa you come up with a profit of $35m. At a production level of 1mtp/a, the profit would be $70m. The pace at which the company can expand production is critical to how quickly the share price can recover.
We wait for the Scoping Study.
EQX Price at posting:
80.0¢ Sentiment: Hold Disclosure: Held
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