RE:30$ Canadian These numbers are absolutely meaningless. They represent undiscounted gross revenues over the mine life. We have no idea what discount rate is being used. We do know that most, maybe all mines pay wages to their workers. Shocking but true. Most mines also pay rather generous salaries to their executives, buy equipment from Cat and pay for fuel to run said equipment.
Speaking of silly numbers, I listened this morning to an interview that's probably a few weeks old, Jason Burack interviewing Lawrence Lepard. I distinctly heard him say that Michael Gentile told him that capex would run $400-$600 million and that at $3 copper, would generate $800 million ebitda/yr.
On a different interview, Grandich-Gentile from last week, M. Gentile compared the Kay deposit to what Foran is developing. Foran's McElh. deposit is about 25-27.5 million tonnes at 2.5% CuEq. They plan a daily thruput of 4200 tonnes.
I believe AMC uses non-metric measures. I've previously heard MG estimate the Kay deposit at 20 million tons of 3% CuEq. If AMC mines 2 million tons per year, that's 5714 tons/day on a 350 day year. That's larger than Foran, but let's be generous.
Soooo, at 2 million tons/year and 60 pounds per ton, that's 120 million annual pounds of copper. About the size of Gibraltar. At $5 per pound, that's gross revenues of $600 million. At $3 copper, that's $360 million, no? That's quite a trick, generating $800 million annual ebitda from $360 million revenue!!!