Fact Checking MR BiggL3 Nov 2021 02:33
BigL.
Okay great, but the one thing you are failing to say is your actual point, you are throwing out Maths, and asking us to draw conclusions, based on your own assumptions which are lacking any facts.
Let's break this down, with a little late-night fact-check-Orama with Bottle.
"But it is under 400m of cover, over 50 km from the nearest smelter, will involve hefty toll processing fees, and at the end of all that GGP come in for a 30% share."
400m of cover, TRUE,
100% fact 420m cover to be a pedant.
Over 50km from the nearest smelter: True:
Ore will be transported in trucks along a new 55km long haul road to the modified processing plant.
"will involve hefty toll processing fees":
You are drawing a large conclusion from this one sentence.
"The project economics do not include any estimate of the tolling arrangement whereby capital expenditure such as upgrades to the processing plant at Telfer will be paid for by Newcrest 100% and Greatland will pay a capital contribution and tolling margin to Newcrest as part of the proposed tolling arrangement."
“Phase 1 involves sub-level cave mining I believe – to which the $84 per tonne estimate applies, broken down to say, $42 per tonne for mining costs and $42 for transport and processing costs."
FALSE: it (phase 1) will be a SLOS (sublevel Open Stoping operation) and will mine the REALLY high-grade ore 3.5-2.8g/t over 9 years. Your $84 is part of the AISC.
1 Oz (28.3g) of Gold is today worth $1800ish which means (at an average of 3.63g/t(Indicative Havieron Mine Production Profile)) over the 9 years is $230 worth of gold per tonne of ore mined. (NO COPPER) – we can take your $84 from the $230 and still have $146 to spend. (based on a 100% recovery, saw not much point in factoring in the “Mining recovery factor of 97.5%” it seemed close enough.
As for Phase two, you will have to wait for the DFS for that. but to your point, I am happy to spend $600m if it means I am mining 50Moz over the next 30/40 years. I mean even at $1400 an ounce, we get... you do the math, I am too busy writing a list of what I want to do when I retire.
Conclude your point and say what you mean.