Year Ending June 202228 Mar 2022 17:55
Copper Production
edzi thanks for correcting my cost of Cu production from the Zambian dumps. I just could not remember the correct figure or where to look it up, thank you. Using your fig. for production recovery cost of $4500 - $5000 /ton, effectively halves my earnings projection from Cu from $5m /month down to $2,5m /month.
Now thankfully I only used an output of 400 tons Cu per month from Roan available for treatment at Sable. But with Roan now ramped to 10000 tons a Cu per year, completion early Q1 2022, the total output from Roan is now 800+ tons per month. Or total Cu tons available for processing at Sable is 150 (private ROM) plus 800+ tons Cu , 950+ tons Cu processed per month, ie 12000 tons per year. !2000 tons Cu processed per year equates to Sable's design capacity, and at full capacity one expects the efficiencies of Sable to increase.
Hence I expect Sable to generate profits of $6m per month from Cu on wards from Q1 2022 . I further note that other posts on this BB have opened up on Cobalt. Now all Cobalt recovered will be free of cost, all recovery costs being born by Cu. Also the quantity of Co recovered largely depends on Co tails present in original Cu dump.
Now if JLP will just forget Cyprus and move over the border onto the adjacent Cu dumps in the DRC, here a distance of a few miles. The quantity of Co in these dumps is much higher than Co present in adjacent Zambian Cu dumps. JLP does not need to move out of Southern Africa, the rewards here are more than significant.
PGM production.
I confess I get some of my PGM figs from SLP reports, which as of Dec. 2021 had a current PGM basket price of $2955 PGM ounce rising rapidly. PGM processing plants typically have a recovery of between 52 and 57% of the PGM ounces present. This recovery rate is largely influenced by amount of oxidisation of ROM material supplied to recovery plant.
Inyoni has two advantages over conventional PGM plants. By detailed blending it is able to handle a mixture of ROM feeds, most plants tied to a single feed. And because the plant is fully integrated the PGMs from the ROM feeds go directly to the PGM recovery plant with minimal loss to oxidation. Even a small improvement in recovery rates has a large impact on profits. One would expect the PGM recovery rate at the new state of the art Inyoni plant to be between 62 and 67% of the supplied PGM feed. But these figures are dependent on more info from JLP . But I support other posts on this BB in stating that earnings for year end June 2022 will exceed earnings from year end June 2021.
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