RCH richfield group limited

the numbers are oustanding

  1. 1,057 Posts.

    I've got hold of the Ruby Creek (Canada)feasibility study document. Its smaller that Moly Metals project. It will mill 7,200,000 tonnes of ore as opposed to Molys plant doing 15,000,000 tonnes per annum. The grades are about the same as Molys maybe a bit higher at around 0.075%.

    The capex on Ruby is circa $300M whereas the bigger Moly outfit is $1Billion.

    Now, Ive carefully tried to use the experts dilution figures, mining costs roasting and transport cots and capex maintenance figures so I'm going to be pretty close to the mark.

    Assume RCH went with a 7,200,000 tonne milling operation.
    Assume the Mo spot price is $US20 lb (currently about $US30lb). The following figures are in $US. Also I kick the capex by $200M to $500K as everything has gone up.

    Rub Creek Net Profit $100 Million

    RCH (same plant) $ 353 Million.

    Capex payback would be under 18 months.

    Live of mine based on current resource only 14 years.

    The above is the effect of the higher grade in the RCH case

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.