Tin, page-39

Tin prices are heading back up which is nice to see, closing at $17,402 USD / $25,531 AUD per tonne. Also since it's been a while i've decided to take a punt at forecasting owner costings vs previous. Previous cost forecast is below (From 12th April 2018 ANN):

This will give us a current margin of $8,231 AUD per tonne. ANW anticipates they will produce 850 tonnes, however this is lowered to 750 tonnes based on a mass balance calculation so i'll go for the lower to be conservative. 750 tonnes x $8231 per tonne = $6.17M profit for the mine not including possible expansions. From the EPA they anticipate 6 days per week of production with 3 tonnes of tin concentrate produced per day = 18 tonnes per week = $148,158 profit per week.

Now these costs aren't looking at owner mining so lets look at that (From 13th March 2019 ANN):

"Owner mining operating costs for Granville are estimated at $100,000 to $130,000 per monthdepending on blasting requirements and are inclusive of equipment rental, fuel and labour."

Taking the highest cost base this would be $1.56M per year, $30,000 per week or $1,667 operating costs per tonne of concentrate produced (based on 18 tonnes produced per week). This substantially reduces the site operating costs compared to the previous $13,200 per tonne, of course this amount includes other expenses too so it is a little difficult for me to find the appropriate costings. Contracted mining/production generally has a margin of 20%-50% so we could be saving anywhere between $300 - $1000 per tonne of concentrate produced ($225,000 - $750,000 for the entire production). So based on this we could see a 10% improvement in profit.

This is all my own guesswork so shouldn't be relied upon. Does anyone else have a better understanding of owner mining costs/how much of an impact it has on costs compared to contracted work? I'd be interested to see other takes on this, it looks like we will save money in the long run but if you think otherwise let us know.

We should be getting the half yearly report by the end of next week so hopefully we can get some good news on production/sales!