The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
So for 100t 69% concentrate we convert to MTUs = 60t/6900MTUs.
Then we receive 80% of APT MTU, which contains 79.3% W metal (almost equivalent to the 80% we receive per MTU)
Light bulb moment.
GIT
So breakeven not 80-100t/month but 120-150 t/month.
GUG
79.3% is close to 80% hence that must be the reason for the 80% of APT price ie no further reduction?
FID
"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 2017 dollar terms) and a EURO
dollar exchange rate of US$0.91. "
No where does it say about a further reduction by the % concentrate.
GUG Thanks.
"Tungsten is typically priced according to Metric Ton Units (MTU) of Ammonium Para Tungstate (APT), which is the main tungsten raw material traded in the market. "
...Yes that's correct.
"1 MTU is equal to 10 kgs and 1 MTU of APT contains approximately 7.93 kgs of tungsten."
...Useful but we get paid 80% APT/MTU not the metal price.
Can anyone tell me why the APT price (which is an intermediate product) is being attributed to W metal. They are not the same thing.
My understanding is we get 80% of the APT price. This reflects the fact that concentrate is produced not APT. Concentrate is process to derive APT.
However, assuming a 69% concentrate , the weight of concentrate has to be multiplied by the % WO3 .
So 100t WO3 concentrate would contain 69t W metal, hence an MTU weighs 10kg but the concentrate weighs about 15kg. 69% *15kg concentrate @ 69% = 10kg( ie an MTU).
I should add that the 80-100t is per month.
GUG
I inferred concentrate as that is the final product. Although point taken.
I watched the webcast with MM.
During this MM stated that OPERATIONAL (ie not including interest or G&A) breakeven was 80-100 t concentrate.
100t presumably at the then current WO3/Sn prices and 80t if prices rose to what he expected. Sn price in particular has more than met MMs price expectations.
GLA
GIT
Good analysis, but it only works if all Q1 202 product shipped to 8.3.2021 is produced in Q1 2021 (and not leftover from Q4 2020).
How can you be certain that it was?
No denying that!
safety,
In the recent proactive interview with MM, he mentions the 8th March delivery and also another couple of deliveries anticipated in March (or words to that effect).
The deferred shares have no value, they cannot be traded. Deferred shares are a tool used to facilitate the consolidation.
If I had 10m shares @ average of 0.15p, I would have post consolidation 100k shares @ 15p.
If I'm correct.
If I had 10m shares @ average of 0.15p, I would have post consolidation 100k shares @ 15p.
If I'm correct.
My Bad 10k shares.
100k shares
YB
"I appreciate the kit is running far better now, but that still appears a tall task considering they will be processing the lower grade ore."
So if that did happen that would show a massive improvement in the plant.
Agreed, I've been banging on about ROM grade recovery for a while.
I suggested that doubling the ROM recovery grade (30% to 60%) was one of the factors that would lead to full production, the other being increased ROM throughput (Crusher and Jig/mill each have a capacity of about 700k tonnes/qtr v Q4 ROM processing of 270k tonnes/qtr).
Don't forget the gold deposit is tiny and would need substantial further drilling to get to a JORC resource worth investing in a gold production project.
Get LP running on song and then think about gold potential.