Mining / Processing Costs, page-9

Hi @bigfatsirion - Hope you are good (I do feel as if I am swearing at you by tagging you directly!!!)

There was a discussion of some calcs before.

I highly recommend new and existing investors to have a read of the thread.
Of course DYOR should apply but in my opinion it's an excellent starting base

In particular, I've attached @binwood post, where we assumed 50MT, 65,000 tonnes x 75,000 per tonne
from https://hotcopper.com.au/posts/30378248/single

"IGV (In Ground Value) is always a bit of a misnomer.​

But let's look at it:​

Based on the calcs you guys are doing we have an IGV of $4.875bn - bit of work to do to prove 50Mt but not that much so happy enough with that.​

We also have roughly 3x the tonnes of Copper at the low end at 10% of the price, so add 30% to IGV. That gives us $6.3375bn ​

Now assume a payability of 50%. That instantly cuts it to $3.16875 ​

Assume $2.50/t mining costs. That is $125m.​

Assume $20/t processing costs. That is $1bn​

Assume $300m capex for plant built and pre-strip etc for 4mtpa operation.​

That reduces our number to $1.743bn.​

Assume linear cash flows and LOM of 12.5 years (50Mt/4Mt)​

Annual cashflow is $139.5m​

Convert to AUD = $186m (fx at 75c)​

Run that through a 10% NPV and we get A$1.3bn.​

So not far from what I would expect to be honest. ​