The elephant in the room9 Jan 2020 21:07
As the tungsten price increases ( it is at the moment and predicted to continue to do so) we can produce less tungsten than 50t per month to break even. The price increase is all extra revenue with no extra costs to production. And the price of tin was up again today. My fag packet said if the APT price be $240 mtu and we get 80% makes it $200 revenue and costs are $100 per mtu, we get left $100 per mtu. If we produce 50 t per month that’s 50x100x100= $ 500,000 per month which is $6million per year which roughly pays the interest on loans. However, tin is rising and that reduces the mtu cost,so that’s good. every dollar on the mtu is 80 cents sell price,Or revenue as I call it, or if its 50 tons its .8x50x100= $4,000 extra. Over a year that’s $48,000 but if it’s $10 more it would $480,000 more. But as tin is going up that all gets better. But if we produce 100t per month it all comes out at £1 million a month with $12 million after costs with an extra $960,000 for every extra increased $10 dollar. But we are geared up to make 200t a month which is double which is $24 million with an extra $1.92 million per extra $10 dollar. But what about the Regua production, what about the 350 t per month, what about the gold at Sao Martinho with some predicting it to be $3,000 per oz by end of the year I hear you say. But, no, I say my fag packet is all written on, do yer own maths. All imho.