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Thanks Cornishknocker
Yes I did, as you'll see i took the average of the hedge price and the spot price
Have you included the below in your calculations?
To protect the Company's financial performance from the volatility of copper price, and as a requirement of the West Face loan note financing, 3,600 tonnes of copper production for 2021 (approximately 50% of 2021 production) has been sold forward at US$3.494/lb.
the way i look at it toby said on new rns that they gonna soon start little deer. in my option that means ming mine is possible nearly sorted maybe few months. i don't see toby start a whole different project if the main mine not up and running nearly...
Don't get to wrapped up in the 3 month average production, there will currently be a lot of ore coming from development rather than production. And as those stopes come into production in the next quarter, the mine will hit full production quite quickly. At the moment I expect it to be over 1000tpd.
Yet again, Cornish, you exude an inimitable informativeness and sanity in your posts.
Thank you Cornish
Keen to learn that tpd figure for Q1.
We know they want 1350 tor end of 2021.
Interesting to learn how early on 2021 we hit that...
Nice work.
That bottom figure is Canadian dollars.
For people wandering about cashflows and production, here is a bit of analysis of last years production figures, guiding to what we can expect un a couple of weeks.
Q3 production was 54000 tonnes or 600tpd average. We can take that as the low point.
In q4 production increased to 61,000 tonnes (680 tpd), so by the end of q4 production was likely at 750tpd.
It is likely that q1 production has averaged 825tpd - 75,000 tonnes and the grade which was improving is likely to be around 1.75%
Mill performance is 95% recovery.
Therefore I estimate q1 production is going to be around: -
75,000 x 1.75% x 95% = 1247t of copper
We get paid 90% on delivery to tge warehouse, half of production is hedged at $7700 and the other half we get paid spot price, so the quarter is likely to have averaged $8300, which means tge company would have recieved $10,350,000 US from operations or $13,000,000 Canadian.
There would gave been a settlement figure from the months shipment for the additional 10% and tge gold and silver credits, for this quarter this will be a large sum - possibly around $5 million us - this is because most of the copper on February's shipment was delivered to the port when copper was around $7200, so the company would only have recieved $6500 for the 1500t in the forward payment, so there would be an additional $3 million to make up the difference, plus tge silver and gold credits. From this there would be deductions for the shipping, treatment and interest on the forward payments.
So altogether we would recieve $15,350,000 us, from that we would be paying out: -
Treatment charges - $250,000
Shipping - $200,000
Interest - $120,000
So total income would be $14,830,000 us or $18.5 million Canadian.
If we assume the mine averaged 150 employees during the quarter and the average mine wage us $75,000 Canadian per year, then the wage bill will be around $2,800,000 for the quarter and we say tfat wages were a third of operating costs for the quarter tgat means the operating costs for the quarterwere $8.5 million Canadian.
All in that means tge company us likely to see a $10 million positive cashflow from operations for the quarter.