I did a bit of light reading on Border last night...
SBR published that beneficiating by DMS (dense media separation) was an effective way to make Border economical. They stated the following:
Value of potential ore is around US$45 / t
Direct Mining Costs US$10 / t
Mineral processing costs around US$6 / t
3% mining royalty.
Now I am no mineral expert, but at 1 million tpa, equates to around US$29 / t or US$29 mil gross profit per annum..
The prices above was based off a 5% discount to metals prices on 18/01/2012. Zn: US$1870/t, Pb: US$1960/t, Ag: US$28/oz
Today these metals are going for Zn: US$2,230/t, Pb: US$2,160/t.
SBR need to get these minerals out of the ground, and then using the cashflow from this to fund development of Dreihoek/Southridge and then exploration across the Otavi. Its not rocket science.
We need a clear path/plan to production of these areas, and a reduced reliance from capital markets / share issuance on exploration expenditure.
Just my 2 cents..
SBR Price at posting:
3.0¢ Sentiment: Buy Disclosure: Held
