SYR 3.39% 28.5¢ syrah resources limited

Syrah with BHP Billiton Management, page-12

  1. 2,039 Posts.
    lightbulb Created with Sketch. 147
    Graphite states that mining costs are the same, for Chinese producers, Brazilian producers and Syrah, and quotes a figure per tonne of ore. This completely ignores the fact that a tonne of ore in China and Brazil typically contains about 5% graphite, whereas, at Balama, Syrah will be mining ore of 20% graphite for many years. So a Chinese or Brazilian company needs to mine four times as much ore to produce a tonne of graphite.

    Mining costs, and processing costs to produce a marketable concentrate, are therefore likely to be materially different.

    Cheers,

    Prime1
 
watchlist Created with Sketch. Add SYR (ASX) to my watchlist
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.