Correction - $3m profit
The figures in my previous note are not correct sorry!. Here is a revised assessment.
If exmin are to produce 1080k per annum this would cost $15.1m using the upper end of there cost range at $14 per tonne.
If prices are to stay at current levels revenue would be approx $25m for gold (25,000 x $1000) and $1.2m for silver (60,000 x $20) total of $26.2m.
That gives us a profit of $11.1m and at 30% EXMIN share is $3.3m
This is obviously not as good as they had forecast previously. I think they were aiming at $4m. However there is some prospect that gold and silver prices will continue to rise.
Clearly the cash costs are high for this project which is out of line with Hochschilds other projects.
These are my own cals for information only so please do your own DD