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Hi Kalan,
Wishing you and your wife all the best at this difficult and stressful time.
My thoughts and prayers are with you both.
Best wishes,
Prof
She's doing great thanks Gray1. Surgeon said it all went to plan. No pain. Just got to wait 4 weeks for further prognosis. Fingers crossed it hasn't spread. Apreciate you asking.
Meant to ask how is your wife? Hope she is feeling much better today.
Kalan
All in costs only gives you gross margin then you have to deduct interest, tax, depreciation and amortization then you arrive at nett profit if that is what you mean.
Yep, would agree Kalan. We dont know what they’ve been processing to date. There was a load of tails that came with Sable. They have been testing a lot of samples i guess. So the cost of producing these would be completely different to a long term commercial agreement. The small scale miners are going to want their cut. But what a clever play, to set up a partnership, where we probably pay a fixed amount per ton. With an option to take control. Leon was talking about developing the mines. Extending the mines etc. I believe they are going to seriously change the scale and size of M. These arrangements allow time to decide if its worth taking control, or just keep the partnership going. They have identified 50 and you can bet, they are the ones full of further potential. I believe this is such a clever play, its going to transform mining and seriously assist the smaller miners. The modular approach was made for this. Pure genius from Leon &co.
Cheers coldfeet. A bit more enlightened. Will attempt cutting and pasting from my laptop when I get home. Still looking after grandkids.
Hello Kalan,
Not sure but I've heard of AISC from a gold miners perspective. Found this which might help, or maybe not?
https://www.gold.org/about-gold/gold-supply/responsible-gold/all-in-costs
I assume AIC is sustainable and non-sustainable costs.
ATB.
$3800 for our copper operational profit?
'all in' costs i've always thought includes the share of overheads for the company and surely must include payments to the owners of the copper run of mine? all in costs should include everything. so profit to the bottom line of the spreadsheet currently at about $3800 minimum for non a grade copper - my take for what it's worth. about 95 million dollars per annum at 25,000 tonnes. simplistic back of *** packet but it might be ballpark in the medium term, plus chrome, getting close to the market cap per year in profits.
accept i may be talking utter b.....s there, would welcome someone who knows better ripping my post to shreds.
$3800 Seisnav was the lowest they quoted with economies of scale.
It probably is Frogkid but as usual we are left to guess when JLP could have communicated that their would be some payment to the miners thereby increasing costs. Not hard to do they don't have to say how much they are paying them.
How many on here have complained of vague or incomplete communications? Is this just another example? That is what I meant by smoke and mirrors. I wasn't disputing that their could be extra payments due to the miners Dorfan.
Someone would have to look back through the RNS's to see what has been officially stated to the market, and to be honest I can't be bothered to do that! The website quotes a figure of US$5,281 from last years financial results (nice to see they have given the website a refresh by the way).
I'm sure in interviews etc, he has quoted a number nearer to US$4,000 / tonne.
Thanks Jack, that is probably the answer
Regards
Frog
I did Dorfan but it is only a presumption and it maybe be right. I don't see anywhere where JLP have confirmed it.
Gray
Why do you not read my post to frog
I should have added LUFC everyone is wondering where the less than $6K is coming from on roast when it is only $4.5k now.
Our costs are only $4.5k per ton now LUFC and we are producing less than 300 tons a month according to the first 6 months financial statement.
Gray1, he had said this a while back, as the fixed cost element per unit reduces the more we produce.. I believe at full pelt at over 10k tonnes, the cost is sub 5k
Sumoskier apart from mentioning they can make a payment capped at $3 million to have a majority holding and whilst they do mention partnership there is no mention of a payment to the miners.
In the interview Leon does state they have informed the market that all in costs will be less than $6k don't remember him saying anything like that to the shareholders like us. I stand corrected if they have.
Smoke and mirrors spring to mind as more detail surfaces about Copper.
I think the interesting point about the Copper strategy is that if we, as close followers of the company, can’t really figure it out how can you expect others ! Links to why the SP is not reacting to higher Copper prices!
Ardbeggar, the small miner situation is unbelievable. Jubilee can cherry pick one at a time. Set up a partnership arrangement with a buyout guarantee. No upfront costs till Roan and Sable are full. Then they will have to start building modules like they are going out of fashion. Its utopia. Better than i could have dreamt. Looks like theres no competition either in that sector as much Leon says its much overlooked. Theres over 3,000 small scale licences. Leon has identified 50.
I think I get it now.....I've looked into the small miners a bit and here's my thoughts. Please any experts correct me if I'm wrong.
Mikie, it says in the last project update that they are buying controlling interests in the mining operations. It's still a partnership type operation but one where Jubes hold the controlling interest/power. It's interesting as it also talks about capacity, and clearly the IRH deal will provide enough capacity for, as it's stated, 'at least 4 Roan size modules'
So if that's the case it looks like it's very much a repeat of the Chrome operation expansion, where at the start it's joint venture stuff in the main being produced with IRH where we get a cut, but as we spend the $ we are making from this to buy these small mining operations and their reefs/dumps that they are aiming to buy in locations close to the modules we build, we will increase the % amount of Copper that we own from ground, through processing and refining, to the point of sale.
Look at the Chrome margins over the last year to see what happens when our % of self made product increases towards and beyond the amount of fixed toll processing for other people.
If they can expand at a similar rate to Chrome, i.e. from virtually nowhere to 2m tonnes in 4 years, then sky is the limit. Buuuut, with the added cash they will have from Chrome being available to either expand Chrome or Copper depending on where the most money lies without tapping shareholders or having to wait between building modules.....the speed and scale could be quite astounding.
I kept saying on here that given margins for using your own material it would make sense for us to get into that for Copper as well as the IRH deal....well looks like the IRH deal is the security and base cost provider for us to do just that with these small miners.
If this is totally common sense and known to everyone already and I'm a numpty that didn't see just what this small miner business was about till now then sorry. It's just been a lightbulb for me.
I was going to ask that very question Edzi (I'm with you all the way on the tinnitus front!) There have been some helpful speculations about what Leon means by all in costs, amortising the capex of the modules and purchase of mining license etc. Another possibility (not Munkoyo) is that we are setting up some joint ventures in which the mine owner is essentially a sleeping partner and is paid a royalty which must be added to the processing costs of ca $4000 to get the 'all-in' cost
In any event, I sincerely hope we have ordered a job lot of electrical control gear!
On the Roan front, it seems odd to do a visit on a partially working site. If the fuses haven’t been added yet, what’s the point? Much better to RNS and visit so the detail can be drawn out?
Looks like they are building the right to buy each mine into the contract, but before they take that up i guess they pay a rate per tonne.
My take on Leon’s cost of copper production is that cathode is c$5000 per tonne ie less than $6000. Copper in concentrate is c$4000 per tonne as often mentioned when discussing Roan when fully ramped up. As often happens in these Roast interviews no one makes it clear what specifically they are talking about.