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Good to know vii. Spotted this on LinkedIn feed...
https://www.tungstenwest.com/post/why-we-need-the-hemerdon-tungsten-mine
ATB LB
Re aggregate sales MT said in the presentation that TUN was getting nearly £11 per tonne now. up from £6.50 at the start.
So, if they get 200 lorry movements day at say 20 tonnes per mvt that would equate to income of nearly £44k per day or approaching a maximum of £16m per annum income. if working a full capacity. That would depend on the supply of aggregate being maintained though.
afternoon Vii,
I assumed they were currently working through existing overburden and the plies of old Wolf tailings. Cost of aggregates generally is going up and up so this all bodes well for the future.
I really like this aspect of the project and the philosophy - the efficient use and cash capture of the bi products, and the positive ESG element.
I was hoping to have a pocket of time next week to take a physical peek for an hour. It's looking unlikely now but I do swing by every now and then.
Keep it going matey - every post exchange the valuation doubles :))
Enjoy your weekend.
ATB LB
Good morning LB
I think the number of truck movements will be a lot lower at the moment - for moving aggregate that is. I think TUN has just been testing the market with existing stocks as it is not yet mining/crushing rock.
When the company was considering mining 3.5m tonnes of rock p.a. I think they were hoping 2m tonnes of that might go to aggregate sales. That may have been trimmed back to 1m tonnes of sales. At 20 tonnes per lorry load, that would be 50,000 export lorry movements per annum or 1000 per week - 200 per day.
The expected prices 10 months ago for aggregate sales were:-
Fill agg £8 to £12 /tonne
Concrete agg. £15-20/ tonne.
If lorry movements are restricted, it would seem to be better to be selling aggregate for concrete manufacture than fill, so 1m tonnes might bring in revenues of £15m to £20m.
Evening vii. I was erring on a bearish case. True it does state 150 exports. Hours are 7 am - 7pm. If that's the case it's a truck every 5 mins. More likely its currently less than 150. Applying for that amount and phasing an extension goes to show what volumes they anticipate.
Either way it's potentially ongoing revenue and like you say probably more than £3m pa. All helps lessen the cash burn. Agreed - the restart is the main event.
I'm probably down that neck of the woods next week. If I've got time I'll have a pasty in a layby and see what's going on. :)
ATB LB
LB
Interesting numbers. I thought that the150 lorry movements were for export i.e. lorries leaving the site. So perhaps 150 not 75. The lorries might carry more than 16 tonnes. . Also I think TW has agreed to pay GRS 18% for marketing and logistics, so they may be getting nearer the £20/tonne you paid, less 18% to GRS. All seem to be pointing to a higher number than £3m p.a. to me.
However, it is all a bit up in the air until we hear what the revised mining plan will be.
Just a thought.... article states 150 journeys. Assuming 1 is inbound unladen and 1 is outbound full of grit.
75 loads a day. Based on a 16 tonner that's 6,000 ton per 5 day week. Being conservative there - trucks could have a bigger payload.
No idea of commercial rates but I recently bought 20 tons of decent graded 803 for £20/ton, so say commercial rate is approx £10 a ton = £60k a week.
£3m per annum less costs is healthy subsidiary income whilst we wait for mine start up. Could be partly funding head count given local labour rates.
Feel free to pull this apart, it's very finger in the air.
ATB LB
https://aggregateswest.com/
Hi Folks
A snippet in the local rag today. Planning revised for highways following public consultation:-
https://www.plymouthherald.co.uk/news/plymouth-news/tungsten-west-plans-cut-daily-7275121
ATB LB