TSXV:TVC.H - Post by User
Post by
nickbillfishon May 04, 2022 9:06am
128 Views
Post# 34654306
TVC profitability and payback
TVC profitability and payback In reading the financials the encouraging things are:
1. Once Papomono ramps up it will deliver 2,000 tonnes of ore per day or 180,000 tonnes per quarter. If the grade stays at 1.5% that's about 6,000,000 pounds of copper per quarter. Costs are to drop near $1.66/lb, bit let's say they can make a profit of $2.50/lb that's $15 Million per quarter.
2. The third party miners supplied nearly 80,000 tonnes of ore in the quarter up 100%. That's 320,000 tonnes for the year. I couldn't determine the grade but it said each of the past 2 years the grade increased by 10%. Not sure the profitability, but let's say this adds $3 Million per quarter once costs drop. Also bodes well for the rest of the tenement. Again their crusher has 7,000 tonnes per day capacity.
So if later in the year or early next MTV can generate $18M/quarter profit, they can extinguish the debt in 1-1/2 years. You still have nearly 5 years of mine life left in Papomono.
The undercutting going on determines the stability of the mine, they've completed 10 of the 15 drawpoints and should finish by Mid May. You can't rush this process and it sounds like they are doing the right thing.
end.