RCH richfield group limited

0.2 moly equals 519m net profit

  1. 1,057 Posts.
    If this project can mill at 0.2% Moly (even if its only in the first few years, the numbers are ballistic in size.

    I've assumed $20lb Moly market price. Moly is currently about $30lb).

    Once the stockbroking mining analysts go over this, I would dare say they will give their dealers are pretty favourable outlook.

    The following costings are those used in a recent feasibility report published by Ruby Creek in Canada except I have been more conservative by increasing apex by $200M to $500M.

    Total Material 22,000,000 Tonnes p.a
    Milled 7,200,000 p.a.
    Stock Pile 800,000 p.a.
    Waste 14000000 p.a

    Total Cost $86,000,000 p.a.

    Cost/t/mined 3.909090909
    Cost/t Milled 11.94444444

    Milled 7,200,000 tonnes
    Grade 0.002
    Contained Metal 14,400 tonnes
    Recovery 90%
    Metal Recovered 12,960 tonnes
    Loss In Roaster 1.50%
    Metal after roasting 12,766 tonnes

    = 12,765,600 kgs
    = 28,084,320 lbs

    Gross Revenue in $US = $561,686,400

    Deduct 2% marketing -$11,233,728
    Transport = -$1,914,840
    Roasting Charge @ 1.98 kg = -$2,5275,888
    Net Revenue $523,261,944

    Less Production Costs - $86,000,000
    Less Sustaining Capex - $ 5,000,000
    Less Interest - $37,500,000
    Less Deprection - $50,000,000
    Less Head Office - $5,000,000

    Net Profit $US518,261,944 p.a.


 
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