The basket price dated on @7th Jan is not including Cerium oxide. So for 1,000 tpa of this is basically means 2,000 tpa with Cerium Oxide, that is where the 50,000usd/ton came in. I agreed there are many assumption over my simulation, as I don't think the management has mentioned the overall cost and the profit% split. I strongly suggest you follow setfire2thehive who has in depth info on the whole thing. I basically copy his work and try to get some feel how the current spot price can affect the MC of the company. SP is forward looking whether we looking at current 1,000 tpa or future into 5,000 tpa is individual preference. There are other aspects which also need to be factored in like the reserve/resource upgrade, the potential in Africa, etc. Only my opinion, no one need to agree or disagree...DYOR https://hotcopper.com.au/search/search?type=post&users=setfire2thehive
VML Price at posting:
7.3¢ Sentiment: Buy Disclosure: Held
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