I'm not sure how accurate this will be but here goes.
A possible calculation that may give a very rough ball park figure for the profitability of the operation at todays spot prices would be by using the figures supplied in the E79 2022 PEA.
Strip ratio 5.8:1 calculates out to 6.8 tons to move to get one ton of mineralisation x $US 14.40/T (mining + process cost) = US $97.92 or A$146.88.
My spreadsheet shows the value of ore per ton at todays spot price is A$146.50
So, today, the project is uneconomical. Then if you decide to add say 30% increase in costs for inflation etc, then the total cost rises from A$146.88 to A$191.
BUT, if you were to use a higher future PM price of $50Ag & $3,000Au the value of the ore increases to A$376/T which results in A$185/T free cash flow before tax, royalties, DA etc. If it's a 3MT operation, then that equates to A$555M.
Another option may be to guestimate the overburden only as a percentage of the resource size. Say its 1/3rd, then we arrive at A$118M to remove the overburden (41MT x US$1.90/T).
As I said, a guestimate at best.
Largest silver play ASX, page-59
-
- There are more pages in this discussion • 93 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add SS1 (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
54.5¢ |
Change
-0.020(3.54%) |
Mkt cap ! $37.97M | |||
| Open | High | Low | Value | Volume |
| 56.0¢ | 58.0¢ | 54.5¢ | $400.9K | 713.6K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 27715 | 54.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 56.0¢ | 7615 | 1 |
View Market Depth
| Last trade - 16.10pm 05/07/2024 (20 minute delay) ? |
| SS1 (ASX) Chart |