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milestones - part 2, page-4

  1. 846 Posts.
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    Sure, but in your original milestone post you showed the graph at $8Gj then also allowed $3 for taxes processing and transport. I'm pointing out the $8Gj already includes processing and transport, so it shouldn't be counted twice.
    I'd suggest the $5Gj Core includes for processing and transport (including a 10% ROI) is high, and it obviously makes up 5/8ths of the production costs.
    And their cost of production with processing and transport included (but with 0 cost of capital) is $3.05Gj.
    Add your estimate of $3Gj for taxes, processing and transport and the base cost per GJ is $6Gj using your reasonable assumptions.
    So the sensitivity in the production cost is all in the processing and transport. Get that calculation wrong and a ripper deal looks like a turkey.
 
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