good news, bad news (question)Bad news: I see in the presentation that our C1 cash costs in the last quarter have risen to $1.57, quantifiably higher than the 1.44 a year ago. I presume it is derived from the amount of money that had to be invested in the generator farm combined with the imported power costs. No idea where to get the precise data and confirmation from. I don’t think general market conditions have contributed to this increase. Am I missing anything?
Good news: the smelter will bring along a 21% reduction in C1 costs. Assuming there is no sand-bagging, this would be around a $0.30 reduction landing just under $1.20. Combined with the yet-not-disclosed savings from the Lobito corridor, this new C1 figure should be really close to $1.00. I base this on an earlier statement according to which logistical costs are 30% of the overall C1 number. There is a lot in logistics, so not sure what the discrete value is in trucking.
Although I am excited about the WF and Makoko, can’t wait to see KK running optimized at its best.