Just a few very simplistic thoughts and assumptions.
With regards to set up costs I guess it makes not really a difference if the ressource is 25 % larger or smaller. In regard to current mining costs the cost impact in producing more copper within a certain timeframe probably is not dramatic.
Please correct me if I am wrong but....
Actual PFS:
Initial Capital Expenditure US$ 358
Actual Sub-total Excluding Gov’t Royalties & Gov’t Charges: US$ 4500 per ton
US$ 4500 x 39000 (ton per year) x 11 years = US$ 1,94bn
US$ 1,94bn : 48750 (ton per year) x 11 years = US$ 3620 per ton - Note: 48750 = 39000 x 1.25 (+ 25%)
In my view the break even should improve by some 20 %. Shorter mine life, higher yearly productions, better recovery rates might have also a positive effect.
UBS came to a full cost of US$ 2.70 per lb - based on my calculation maybe 2.16, further improvements might bring it down to 2.00 ? Currently 3.29 US$/lb?
Do I miss somehting here? Any views?
BTR Price at posting:
24.0¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)