Member Info for Cornishknocker

Hi DJ, this years is really easy as we have guidance on how many tonnes of copper and Ozs of gold to be produced, so I've just multiplied the copper by a figure half way between the hedge price and the current price for copper and $1700 for gold, which I think are realistic estimates.

We don't need to worry about the ramp up programme or upgrades, as the production guidance will take all of that into account.

Looking to 2022, we can say we will be at full production with 1850 tonnes per day @ 2% Cu however ore sorting will introduce a small penalty in the mill recovery reducing it from 95% to say 92%. There us also likely to be a 10% increase in mining costs to say $50 million total c1 costs, as a result of increased costs due to larger tonnage however that will also increase the goldcrevenues to c $5 million.

So that gives us a copper revenues (@$7500/tonne) of 1850 x 365 x 0.02 x 0.92 x 7500 = $96 million.
Giving a total revenue of $101 million and cash profit of $51 million, which should value the company at $250 - $300 million minimum

So tgat gives

I hate videos like that, for christ sake put some analysis into it! Someone telling to buy buy buy in tgat manner just switches me off.

Just to put some more colour on it, in 2019 the company recieved total revenues of $37.1 Million, with an average copper price of just over $6,000 and a gold price of just over $1,000/Oz. Total copper revenues were approximately $31.9 Million and gold revenues of $5.3 Million.

This year with the targeted production and a gold price of $1,700/oz and an average copper price of $8,500/tonne, we are looking at gold revenues of $3.75 Million and Copper revenues of $62.9 Million with a total revenue of $66.6 Million.

In 2019 the company made a cash loss of $11.4 Million, on that basis, the company is looking at a Cash Profit of in the region of $15-20 Million -if that can be achieved in a turnaround year, that sets a really solid foundation for future years with reducing costs.

Just to be clear, I have left out capital costs (As this is seperately funded this year), depreciation and amortisation charges and exploration costs (as well as increase in value from increasing reserves)

Hi Contrariwise, Ming mine is a copper mine not a gold mine however as as a lot of VMS copper deposits, there is a small amount of gold and silver that is credited by tge smelter - however there is no correlation between copper and gold concentrations. The company is actively targeting areas of the mine with higher copper concentrations (aiming for 2%) the targeted zones have lower gold concentrations. The difference in gold revenues is -$5.2 million on 2019 production figures and the difference in copper revenues is +$19.3 million on 2019 so that's a difference of +$14.1million on 2019 production figures, regardless of the make up.

I can't think of any unique risks here, its just the normal: -

1. COVID outbreak
2. Major mining incident
3. Copper price collapse
4. Strike
5. War

1. Its a low risk despite an outbreak in newfoundland tfat appears to have been contained to st John's.
2. Its a low risk in a first world mining jurisdiction with well trained engineers and staff and a good regulatory system. Also hard rock metal mines are generally low risk compared to coal equivalents.
3. I don't think anyone is predicting a collapse in copper prices.
4. Thats more if a risk in a high copper price environment as staff demand higher wages.
5. I don't think the US is going to war with Canada anytime soon.

People have different strategies

When I Click on ML5467, on the LHS it comes up with the tenement label, so I click on that and it opens up to reveal the tenement information. There is then a hyperlink (5467) which opens up all the reports on the tenement.

Its frustrating as I was trying allsorts to get it to give me the answers you're getting, lookingcat Lyndhurst and mount coffey as well

Thats exactly what I've done, and the information given is as below.

If its there, I can't see it, my list brings up: -

Groundwater investigations - 1990
Mining & Rehab Compliance report -2008
Bulk Sample TCM - May 2018
Bulk Sample TCM Rev 2018
PEPR 4046727 - 2019

Thats the old PEPR for the trial works at MoL in 2019.

Without lab staff you don't have assay results, you don't know your ore grades, you don't know if there's a problem in your plant. Without service miners everything stops underground

That's before tge turnplan us effected, after it translates to $180 million revenue with $50 million costs - $130 million annual profit.

What that would mean is $110 million in annual revenue with $35 million costs.

$5/lb ($11,000/tonne) is looking likely.....

I totally agree.

I see the vacancy board is filling up again....

Any talk of a takeover is nothing but pure speculation at present. But let's be frank, the current market is absolute M&A territory. Top and mid tier miners need copper assets and they want them now - they can go exploring, they can buy development projects or they can by mines. Exploration to mining typically takes 10 years so that's off the table, development to mining takes 3 - 5 years or they can by mines which are cheap - this is the latter.

They are generally very small in the scheme of the mine costs, Royalties in one form or another apply to practically all mines - most countries the royalty is paid to the state - its another peculiarity of the UK that it isn't.

This is tied up in the feudal history of England.
Historically in the UK (we're talking about 500 years + ago), all land was the property of the Crown. During various events such as wars land was given freehold by the Crown to noblemen for services rendered, such as raising armies and the like, these "landlords" built the great estates that were all over the country.
During the early part of the 20th century as the estates ran into financial difficulties, the landlords sold off the estates piecemeal - leading to us "commoners" being able to own our own houses, however in many areas and Cornwall especially (due to its mineral wealth that had made the landlords here exceptionally wealthy) the landlords excepted the mineral rights from the freehold titles of nearly all the property they sold and the majority of the estates (in various guises) still own those rights and any mining will pay a royalty to the landlord.
Crofty is in a different position as a very large successful mine in tge 20th century they purchased the majority of their mineral rights from the landlords (some areas they own have different mineral rights owners so if they are working in those areas they have to pay dues), as a result they are the mineral owner and can grant leases to companies like cornish lithium to work their minerals.