The current price reflects high probability of Oxide production troubles already during commissioning and de-bottleneck work. Only question is how much H2SO4 consumption and thus operating cost increases will hit IN ADDITION to assumed production troubles now priced in IMO.
The supply agreement with Chemnet ex-Darwin signed in 2006 would be for the supply at a certain quantity IMO, no way is Chemnet holding the price at 2006 levels for CMR benefit. Happy to be proved wrong but nothing mentioned about actual price locking.
The actual consumption of acid per tonne is the critical unknown. I do not know how much Browns ore consumes in the process so this in my mind is the one unknown variable preventing an accurate estimation at operating costs. Cuzo, did you get anything back from CMR regards that email about H2SO4 consumption and the "financial modelling" comment?
cheers
CMR Price at posting:
0.0¢ Sentiment: LT Sell Disclosure: Not Held
