RCH richfield group limited

345 million net profit pa

  1. 1,057 Posts.

    If this project can process dirt through a 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 based on those used in a recent feasibility report published by Ruby Creek in Canada except I have been more conservative than them by increasing capex by $200M to $500M.

    This is a modest size set up. Moly Metals is much bigger.

    Total Material mined 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 = -$25,275,888
    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 $US344,761,000 p.a.
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.