You and others like you crack me up. Again no mention of EQR from me, you bring it up. But since you did I will respond.
You state: "Yes inflation has been a big problem over the course of this build,(and every other build)"
EQRs capex went from:
Original BFS Dec 2021 - $22.9m Aud
Updated BFS Nov 2022 - $21.4m Aud
2nd Updated BFS May 2023 - $18.5m Aud
So understand that G6M having a 80% price increase is NOT inflation. Has inflation been 20% for the last 4 years?
G6M
2019 - $65m
2020 Update - $72.7m
2022 Update -$92.7m
2023 Update -$117.2m
Eqrs Capex has dropped 4.4m (~20%) while G6Ms has increased $52.2m (~80%). Quite the difference isn't it? Same Country, Same Resource, Both Open Pit and both over the same time frame but one difference is EQR built a 1 mtpa plant and G6M is built a 0.45 mtpa plant.
The Average grade at EQRs mine is around .3% the open cut ore they are processing currently is .65%. G6Ms first year of ore is .55%. So for the next few quarters EQR is mining higher grade ore than G6M.
Future projected income? I would love to see yours or anyone else's future projected income for G6M. I have only seen one set of numbers on HC and it was mine in this post here https://hotcopper.com.au/posts/68291410/single .
I estimate that for the 2nd Half of 2023 G6M will make $3.4m in profit (Based off of the figures presented by G6M- All in cost of $246 Aud and a sales price of $392 for a profit of $146 per MTU.) This is based on the numbers G6M have given. My expectations are they will be making a heavy loss for at least the first 12 months.
You ask for balance. What area of G6M would you like me to comment on that I have not already commented on to balance whatever imbalance you feel exists?
Like always please point out where I'm wrong and provide the correct figures. And please I would love to see some opposing numbers that show G6M making a good profit in the future.
Over on the comparison thread I did an update of the latest EQR and G6M quarterly numbers. For any that are interested you can find it here:
https://hotcopper.com.au/threads/a-comparison-between-eqr-and-g6m.6754663/
