I might well be given my optimistic view on production tonnage. However, with my numbers I am simply applying a range based on previously released information. If we look at the scoping study results CPL state that
"Favourable geology, low strip ratios and existing infrastructure allow for low operating costs averaging US$46.80/t the first five years of production and averaging US$48.40/t free-on-board Ridley Island Coal Terminal (FOB Ridley) over the life-of-mine (LOM)."
Then the presentation released 11 October pg 10 shows that production will be up and that Coal and Waste Mining Costs will be down with the inclusion of a dragline and larger equipment.
As a result of the Scoping study the Life of Mine breakdown was as follows
Coal and Waste Mining US$ 21.3 CHPP US$ 3.5 General and Administrative US$ 0.9 Reclamation US$ 0.9
Free-On-Rail (FOR) Operating Costs US$ 26.6
CN Rail Costs (Hinton - Prince Rupert) US$ 17.4 Ridley Terminal Port Costs US$ 4.4
FOB Prince Rupert Operating Costs US$ 48.4 or CAD $55.6 @ FX US .87
Page 11 of the same presentation states that Vista should have similar rail and port costs as Coal Valley which is running at about CAD $22.5 and Run of Mine Production should be similar to prairie operations running at approx CAD $11.5 per tonne. Therefore, by my reckoning costs should be less that what was stated in the scoping study due to mining efficiencies and economies of scale. However, I have been wrong before and maybe I should stop looking too closely at CPLs previous releases.
Granger, you could be right. If you understand it to be near US $50 then so be it. However, given their previous announcements I would have thought it should be less than the scoping study and closer to CAD $50 which at fx of .87 = US $43.5. Anyway thanks for your valuable input and its great to hear others' thoughts.
Either way we should find out soon.
Regards
Danash
CPL Price at posting:
$1.26 Sentiment: LT Buy Disclosure: Held
(20min delay)