numbers on high grade zone

The following model assumes (as you would) that their very rare high grade zone is mined first. This covers the first 6 years and pays back all debt.

I've used a long term Mo price of $US20lb rather than the current price of $US34lb.

This is baically looking at the project in year 2 (after 1 years ramp up). It allows for a very generous capex of $750M (more than enough) and debt repayment of $100M p.a. plus interest.

The cash suplus is $A431M p.a. for the project.

RCHs share is 71.25% or $323M p.a.

How they fund the equity component will be the trick. A JV the obvious route.

By the way, if you use the current Mo price, RCHs share after debt payments is $670M pa for the first 6 years. Plenty of cash surplus to entice a JV partner I would think.


Based on a 9Mt p.a. Mill Capacity
tonnes
Total Material Mined 22,000,000
Milled 9,000,000
Stock Pile 1,000,000
Waste 12,000,000

Total Production Costs In $US $100,000,000

Cost/t/mined 4.545454545
Cost/t Milled 11.11111111


Milled 9,000,000
Grade 0.19%
Contained 17,237
Recovery 90%
Recovered 15,513
Loss in Roaster 1.50%
Metal Available For Sale 15,280
kg 15,280,423
lb 33,616,931
$US $672,338,621
Deduct 2% marketing -$13,446,772
Deduct Transport @ $US150 t -$2,292,063
Roasting Charge @ 1.98 kg -$30,255,238

Net Revenue $US $626,344,547
Net Revenue $AUS $695,938,386

Less Production Costs -$100,000,000
Less Sustaining Capex -$5,000,000
Less Interest -$50,000,000
Less Deprection of plant (10 yrs) -$75,000,000
Less Head Office -$10,000,000
RCHs Toli Toli project is a ball burster.



Net Profit Befor Tax $455,938,386

Less Tax -$136,781,516

Profit After Tax $319,156,870

Add Back Depn $75,000,000
Add Back Interest $50,000,000

EBITDA $580,938,386

Less Interest -$50,000,000
less Debt Pmt -$100,000,000

Cash Surplus $430,938,386