RE:RE:hey, Mac, screen change questionMacloud1 wrote: 645,634 fine carats we won't see. But on the other hand we will have a slight increase in the larger diamonds with the extra ore processed.
Well, I look at it this way:
Say those 650,000 carats were sold at $7/carat.
That is $4,500,000 loss in revenue.
Say the average sales price of any additional larger diamonds recovered will be $85/carat.
To make up that loss we need to produce $4,500,000/$85 = 53,000 carats of larger stones.
With a grade of 2.1 carats/ton, that ,means that we will have to mine and process only 53,000/2.2 = 24,000 more tons of ore.
Last year about 3,000,000 tons of ore was mined and processed, the added 24,000 more is only an 0.8% increase, which is far lower than the 10% predicted.
I know that these numbers are just rough estimates, and that there will be discarded fines in the added ore, but I can find no gross error above.
Do you agree with the above? If so, the 10% increase in production will surpass greatly the lost revenue from the fines. I am having a hard time accepting this, seems too good to be true, although I hope I am right.
I will be happily corrected.