RE: From AUR boardNilyab,
I am unclear on a few very critical aspects of your question which relates to "marginal cost (for Amerigo) with and without moly.....at say, $1.20 copper"
I well realize, as you do, that royalties vary a little depending on copper market price, but while this is "expense friendly" in a price decline market, this IMHO is not a huge issue in considering investment in Amerigo over the next 12 months. More critical in examining marginal costs is the production volume relative to any "fixed costs" component of total costs; moly credits(depending on Moly price, volume); and foreign exchange gains or losses, etc...
A quick look below at costs in Q3,2006 for Amerigo may be useful, but I strongly recommend that you do the same for Q3,2005 and carefully note the differences as an insight to the marginal costs question:
Q3,2006
Copper produced 4.72 million pounds
Copper sales......4.98 million
Moly produced....0.16 million
Moly sales.........0.20 million
LME avg. price/lb $3.48
Gross Cu price/lb $3.67 (i.e. incl 3 mth adjustments and before Smelting & Refining)
Realized price......$3.04 (i.e. after Smelting, etc..)
Cost of Sales......$10.15 million (incl. $3.27M Royalties; $2.97 Smelt.& Ref. charges; $4.63M Moly Credit; and $1.02MAdmin., Depr. etc.)
Other expenses... $0.63Million
Stock based Comp $0.19 million
Minority Interests... $0.09 million
Foreign Exchange gain $0.62 million
Interest & Oth. Income $0.44
Total...........$12.12 million
Hope some of this helps,
Peace,
Good Decision-making to All,
ElJ