"WHY do you want century closed down? Cash cost is 64c/lb. Its making money. Cash cost about to drop to 60c once pre-strip acceleration finishes and thereafter 47c"
I read somewhere that one of the big dangers with high capital intensive businesses is that they tend to produce more as prices fall to maintain profits
Eventually they produce so much that the price falls even more
I would prefer not to go down that path
We have a limited resource and I reckon we should only sell it at a descent price say $1 a lb minimum
If we can't get that then we should mothball the mine and focus our attention on metals that are worth something like gold.
However I am not sure, if this would be such a practical approach as there may be big start up and shut down costs. Also it may be difficult to get the labour when you want it.
OZL Price at posting:
$17.35 Sentiment: None Disclosure: Held
