The following model assumes (as you would) that their very rare...

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