AVZ 2.78% 35.0¢ avz minerals limited

Ann: Mining Licence Application Lodged with DRC Government, page-80

  1. 3,200 Posts.
    lightbulb Created with Sketch. 7801
    Say; did that PLS mob make a profit last quarter?

    Also just whilst we're talking;
    Ore Processed 415227t with 72% recovery rate.
    Output was 77820t SC6

    415227 x 72% = 298900t of x grade to produce 77820t at 6% grade.
    therefore feed grade was ~ 1.56%.

    So just to lay that out.
    You mined 2224000t or dirt,
    to find 585000t of ore at 1.42%
    Cherry picked 415277t to throw in an average of 1.56% in the front end.
    Made 77820t. But did they make a profit?

    Total revenue for the ~71kt sold was 37.3m but then outgoings (without the AJM fees) was 43.5m.
    So given you're not making a profit by feeding a 1.56% grade how does PLS intend to be profitable long term given it's JORC is 1.25% Li20.

    Noting any reduction in feed grade not only results in more processed tonnes but also results in an increase Fe content. As lower grade means an extra 1.3T per T of SC6 produced. ~ 90,000T extra per quarter. Given Fe content ~1.1%Fe = 1000T of Fe in the process circuit per quarter, once you're processing the JORC grade.

    Also note this is the 4th consecutive quarter of substantively more 'ore' mined than processed 400kt in total, so I'm not buying the stockpiled story as if the ore in all amenable you'd run the processing plant for free in one quarter. The maths of the recovery circuit and feed grade IMO shows that they are feeding the plant the cream to remain marginal. Even at today's prices they are still in some strife and need to get the AISC down to where it needs to be and that means doing so on the JORC grade.

    All IMO.

    SF2TH
    Last edited by setfire2thehive: 17/05/21
 
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