AGY 5.56% 3.8¢ argosy minerals limited

Not sure if these figures are accurate. First I’ve heard of a $...

  1. 14,029 Posts.
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    Not sure if these figures are accurate.
    First I’ve heard of a $ figure on “current” production costs.

    $14k-$18k/t arguably “reasonable”, considering the scale of production <<2ktpa.

    —-

    Puna Mining announced that it is restructuring its lithium project in Salar del Rincón due to the abrupt 80% drop in lithium prices in the last year estimating $11,000 a ton, when to maintain its operations it needs an average of $18,000.”
    ….
    “One project in particular has had to reorganize its accounts due to the high production costs, which range from $14,000 to $18,000 per ton of lithium carbonate, compared to the current price of $11,000 per ton. "So far, only one project has confirmed a pause to reorganize its finances, but we are confident that this is transitory," the Minister explained, emphasizing the importance of maintaining the confidence of investors.”

    https://ariesonline.com.ar/amp/1333...s-a-reestructurar-pero-ninguna-se-va-de-salta


    ——
    production costs, which range from $14,000 to $18,000 per ton
    ——

    IF the company was to get production sorted, and, say, produce 1000t over the next 12 months…. We might “lose” $4000-$5000 per tonne around current “prices”? This scenario would sap $4M-$5M from our cash reserves.
    Make that $6M-$8M if that was 1500t.


    Arguably a prudent decision to pause rectification and ramp-up works…. Despite the impact on the workforce etc.  


    Again, not sure if these figures are factual. Dyor.



    Imo
    DYOR
 
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