Aceminer, I think your assessment of the next Cap raise is spot on. No way cash flow will cover exploration expenses. As I read it, 50,000 tonnes from Mt Norma @ 2%Cu will take minimum. 18 months to leach 75% of the Cu. Copper sulphate powder is traditionally contains 25% Cu. 50,000tonnes @ 2% Cu is only 1,000tonnes Cu, so expect, 75% of 1,000 tonnes copper over 18 months. So 750 tonnes copper @ $A11,000 tonne is $A8.25m. Transport from Mt Norma looking at map looks 50 klms away and processing using sulphuric acid around $US80 tonne ex europe and needs, I assume to come from Townsville port.Because TNC never mention numbers, so we have to guess. All costs im told will be no change left out of 60% cost to produce final product. Leaves 40% of $A8.25m or $3.3m. Anyone want to argue on this assessment, happy to. Cashflow Rate will be at around $A3.3m over 18 months or average $183,0000 per month. However, 30% of copper will come out in first 3 months I’m told. So will the cash flow cover total Exploration? Only if they don’t explore much. Last quarterly report says: Exploration for the quarter was $2m. Remember TNC need to find another $4m for balance of payment for Mt Oxide. Cash at end quarter 30th June was only $3.49m. Ok. Current rate of exploration based on quarterly report: $2.5m Admin/corporate: $2.9m.Will TNC have to complete a new cash raise in current quarter. Yes, in my view. ACEMINER, you are on the money. As long as drill hitting targets and no misses, should not be a great problem, but agree with BENWEX 2, the MD has made a huge rod for his back making the statement “. Copper sulphate production willpay for all exploration expenses” , 100% he will eat humble pie. Stupid comment to make when he didn’t have to.
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