IMO in stark contrast to Cobourn all figures on MG14 are very conservative and highly achievable. The silver credit equates to $2,805,000 at 67% recovery (18,700 Tonne * $150).
Based on Davids last presentation we have a plant cost of $42M and at a recovery rate of 67% MG14 will generate $49.4M Plus Silver credit of $2.8M = $52.2M.
CAPEX $42M Cash Generated $52M Based on Copper US$3.10, Exchange .92c Cash surplus $10M
PLUS HUGE UPSIDE Lookin at the above the copper price used equates to Aust$3.36 Lb Copper Price currently US$2.86 Lb Aust$ .83c = Aus$3.45 This is where it gets very interesting: The copper price has recently fallen from US$3.55 in April to US$2.84 and would appear to be heading back. The two year average prior to the GFC was US$3.50 with a high of US$4.00.
If we use US$3.50 as a potential and exclude any reduction on Aus$ (Cobourn used .72 as a basis) we could assume a potential increase of 25% on the $49M = $12M or $22M Excess.
