The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Seis.... From the 2023 FY accounts, Page 25, and stripping out a very small contribution for Cobalt as a by-product, revenue per copper unit sold was $7,403 . But the revenue per copper unit in FY '22 was $9,210. If you look at the LME copper cash price chart ( https://www.lme.com/en/Metals/Non-ferrous/LME-Copper#Price+graphs ) for June 21-22, the price didn't drop below $8,700 / t and for much of it it was over $9,000, going over $10,500 twice in October and March. Immediately at the beginning of FY '23 the price broke down, hit $7,000 / t in July '22 and stayed below $7,500 for just about the whole of H1. Therefore I am inclined to think a copper unit IS a tonne of copper and we forget how volatile the price has been over the last couple of years.
I think where confusion lies is, from the Q1 op update, "The average copper revenue per tonne of US$6,588 (Q4 FY2023: US$6,860 per tonne) reflects the increase of copper sulphide concentrate sales from the Roan concentrator..." here the tonne is SOLD PRODUCT - it doesn't say revenue per copper unit. If I am right, plainly the copper price has recovered and stayed in a range of $8,200 - $8,500 which should bode well for our 600 tonnes of copper units production per month at Roan and the imminent ramp up tp 1,000+ tonnes /mth.
Jonah, if you read the last RNS he talks of scaling Sable up to 16,000 copper units per year ...that's definitely tonnes. I think the phrase is useful becuase it describes contained weight of copper regardless of what form it is in.
EH .... with reference to Roan, we are producing 600 Copper units / mth... thats 600 tonnes of Copper metal irrelevant of whether it is in cathode or concentrate form. Obviously as a concentrate we will be selling several times the mass of concentrate than if it were cathode. Typically it will have 30%+ of actual Copper content but we will sell ~ 3 tonnes of it meaning 1 tonne of actual copper. The key word is "units" meaning tonnes, regardless of the form it is in.
You are talking out of your RS!
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"Autodesk expects the proposed acquisition of Payapps Limited to complete during Autodesk’s first quarter of Fiscal Year 2025, ending April 30, 2024. Accordingly, it will have no material impact on Autodesk’s fourth quarter and fiscal year 2024 guidance presented on November 21, 2023. The foregoing descriptions of the contemplated effects of the proposed acquisition are subject to the acquisition’s completion and Autodesk’s ability to successfully integrate Payapps in all respects." So possibly 3 months before its done....if its done.......but as they have been collaborating for 2 years already that's a given, surely.
Chinese copper smelters propose output cuts amid tight concentrate supply – sources
07:44
BEIJING/HANOI, Jan 26 (Reuters) – China's top copper smelters on Friday proposed production cuts among themselves, sources said, as tight supplies of raw material pushed treatment charges to a multi-year low.
The China Smelters Purchase Team (CSPT), a group of the country's top copper smelters, also proposed a floor level for treatment charges (TCs) – one of smelters' main sources of income – at $50 per metric ton, three sources said.
"This appears to have been an emergency meeting in response to the tight concentrate market which is seeing terms now as low as the $20s for sales to smelters," said analyst Craig Lang at CRU Group.
"The CSPT account for around 76% of China's copper smelter output, so any coordinated response to cut production would be expected to take some of the heat out of the concentrates market in the near term," Lang added.
Tighter concentrate supplies are due to disruptions such as the closure of First Quantum's Cobre mine in Panama and Anglo American cutting production guidance.
The scramble to secure supply has meant Chinese smelters have had to accept a cut in TCs, a fee for converting concentrate into refined copper. An index provided by pricing agency Shanghai Metals Market of imported copper concentrate fell by 33% this week to $27.94 per ton.
(Reporting by Siyi Liu in Beijing and Mai Nguyen in Hanoi; Editing by Muralikumar Anantharaman and Michael Perry) ((Siyi.Liu@thomsonreuters.com;)
HDS....I think the 50% was a way of indicating how operational it is....I don't think it was meant as its running at exactly 50% and producing excatly 600 tonnes, ergo at 100% it will produce 1200 tonnes; I think that is being too literal. As for Bushy... he knows SFA.
BRIEF – Goldman Sachs Expects Copper Market To Be In Tightest State Since 2021
23 Jan 2024
Jan 23 (Reuters) – GOLDMAN SACHS:
Copper Market This Year Is Set To Be In Its Tightest State Since 2021, With Anticipated 428 Kt Deficit Set Against Just 260 Kt Of Current Visible Stock
Whilst Copper Market Still Faces Period Of Seasonal Surplus In Q1 Before The Deficit Inflection From Late March, Absence Of Visible Inventory Builds So Far This Year Suggests That Earlier Tightening Cannot Be Discounted
We Continue To Target Copper To $10,000/t On A 12 Months Basis
We Estimate China Copper Demand Will Grow 2.5% This Year
We Now Project 2024 Global Copper Output Forecast To 23 Mt