Member Info for goingunderground

Safetyman. You already lost 5% on the shareprice since it opened.

Sleeven, that is correct. Plus you'll have a handful of deferred shares too that can never be worth more than £1.

Sleeven. you're correct in the total number but there are now 2 types.

Wasp. You don't believe anything I provide. Its in the RNS work it out for yourself. Its not difficult . Sleeven is wrong too

"no one will lose anything" Not correct.

neither

There is your RNS Safetyman. I hope the Gaviscon did the trick for you last night.

If you are going quote somebody, please quote. What he said was "If the prediction of 90t WO3 and 40t Sn, metal, is correct - then that will be worth around $2.5m at current prices."

Note after Sn, he says Metal not concentrate.

Wrong board? WRES have no copper

Safetyman - "in your working out you show a 66% factor ( that being the Wo3 content of the concentrate we produce). This is incorrect ."
Safetyman. READ the post at 23.33 instead of just skimming it says
"Superflymo has not provided ANY costs of production in his calculation. He deals only with Debt servicing. How does that answer Wasps question ? Here is his answer
"$60m (debt) * 12%=$7.2m / 4 (quarters)= $1.8m per quarter
We only get paid for the WO3 content so: $1.8/66(est grade)*100= $2.7m ish
We only get paid 80% of the marker price so $2.7/80*100=$3.4m ish
So, $3.4m ish / $250 (est market price) = 13,636 mtu = 136.36 dmt (ish)
Hence 130-140 per quarter."

It says "Here is his answer" NOT MINE. Superflymofo's numbers. Take it up with him.

Safetyman - "I don’t think Troajan had contradicted this or misrepresented it. However, you do keep referring to what Troajan has said as bring incorrect."
Troajan said in his 8.04 am Sunday post "anyone quoting 80%/60%/40%,or whatever
is posting MISINFORMATION."
It is incorrect, that's why I mention it

Safetyman - "We may be able to sell our concentrate outside of the take off agreement, but I don’t know- if we could we would sell at market price I would have thought"
Who knows, we don't even have transparency of what the offtake contract is.

Safetyman "I find Troajan knowledgeable on mining matters."
That's nice stick with it and see where it gets you.

Troajan. I direct you to page 12 of the FID entitled Investment analysis.

"Investment Analysis: Based on an APT price profile incorporating a long-term price of
US$300/mtu (66% WO3 product, realising 80% of the APT price"

YET, You say "tungsten,we get full concentrate price,quoted on metal exchanges,for both tin and tungsten.
anyone quoting 80%/60%/40%,or whatever
is posting MISINFORMATION."

It is you, as usual posting MISINFORMATION

L200. Let them think what they like.

Superfly. The question was " “So keeping it simple then. How much Tungsten do we need each quarter to cover the interest on the loan?‘."

Yes, you have sort of answered the question but there is a cost in that production. So to actually have $1.8m in the bank to make the payment you must also add the cost of producing that product.
Earlier Wasp assumes a production cost of $100 per MTU. using your numbers that 130t (13000mtu) are required to cover the interest then you also have to ad $1.3m that it costs to produce it. $1.8m revenue would only put $500k in the bank.
You will need 3.6 times that amount to generate the necessary $1.8m. So using your number of 130t that would be 468t per quarter or an average of 156t per month.

I am not saying any of these numbers are correct but you cannot have revenue with no associated cost to produce the revenue

I'm not confused at all Tounge.
Superflymo has not provided ANY costs of production in his calculation. He deals only with Debt servicing. How does that answer Wasps question ? Here is his answer
"$60m (debt) * 12%=$7.2m / 4 (quarters)= $1.8m per quarter
We only get paid for the WO3 content so: $1.8/66(est grade)*100= $2.7m ish
We only get paid 80% of the marker price so $2.7/80*100=$3.4m ish
So, $3.4m ish / $250 (est market price) = 13,636 mtu = 136.36 dmt (ish)
Hence 130-140 per quarter."

Where in that does it include ANY OPEX
Mining
Drill & Blast
Grade Control
Crushing & Screening
Pre-Concentration (Jigging)
Concentrator
Waste Haulage
Laboratory
Management & Administration
Royalty
I've copied those from the FID Toungue

READ IT https://wresources.com/wp-content/uploads/2017/09/WRES-Final-Investment-Decision-Report-FINAL.pdf

Superflymo. You have not taken any cost of production into account. Only Interest on the capital.
I'll keep my 50p

L200. I assume that was to Wasp? I tried to not muck around with his figures too much and just highlight where they need to be adjusted.

50p bet that Superflymofo "doesn't find the time "

You're not Wasp. I've given you an explanation already. What part of that do you disagree with ?

"Lets take last quarter as an example. Production was 100t W. Loan interest is $1.8m (If it was paid) That equates to $18000 per ton. Lets then (wrongly) assume your cost base was $100 per mtu that is $10000 per ton, so even using your incorrect assumption of cost of production then you have $10000 (Production costs) + $18000 (Loan interest) A total of $28000 per ton that you are receiving $18000t in return.
On this basis every ton that is produced at this level of production is creating a loss of around $10k per ton. The reality is actually worse."

Wasp: - "So keeping it simple then. How much Tungsten do we need each quarter to cover the interest on the loan?"
I'm not sure of the relevance of this in isolation, especially that AFAIK WRES have not paid it.

Superflymo - "Per quarter" Not ever. Explain your calculation rather then picking a number out of the air

Wasp - "I never mentioned 100 tonnes anywhere" No, you didn't. 100t W was Q4 Production. I used the latest numbers we have for comparison.

Superflymfo - "It’s 130-140 dmt" Yes, something like that PER MONTH

Toungueston - "For comparison purposes with Wasp it makes sense but 33t of tin would make a significant difference to overall income for the quarter even though they missed their tin production numbers by some way."
Yes it would, but the post is "How much tungsten to break even" You cannot count Tin Income as revenue if you are using it as a "Tin credit" to lower the W production cost. You have only one or the other. Suggest you read the FID to see how they arrive at the cost per mtu.