RE: From AUR boardNilyab,
I was glad to read that you have found the data that you were seeking. I urge attention to a couple of points in response to your request which asked...."Would you know what the unit copper production costs were in Q3 WITHOUT the moly credit?
1) Production costs can (unfortunately) have various interpretations and in the case of Amerigo reports I detect that "Production costs" include Moly benefits and include maintenance expense....$5.86 million in Q3,2006.
Additional costs which are included as part of the "Cost of Sales" in Q3, 2006 include:
- Adminisration, Transportaion, Asset Ret., etc.. $0.57 million
- Depreciation & Amortization $0.45 million
- Total Royalties to El Teniente $3.27 million
Note: The difference between copper sales quantity(4.98 million pounds) and the production quantity(4.72 million pounds) in Q3,2006 also need careful attention/differentiation.
Further Amerigo Costs("Total Costs") incurred in Q3,2006 in addition to those above include:
- Interest expense, office, insurance, etc... $0.63 million
- Stock based compensation $0.19
- Minority interests $0.09
- Foreign exchange gain $0.62
- Interest and other Income ($0.44)
- Income Tax expense $1.49
2) Royalties have particular non-linear aspects:
Royalties from MVC to Codelco-El Teniente are based on a formula that considers both the price of copper and the copper content in the tailings....... for copper at $1.30 per pound or higher, the max. royalty is 13.6%(i.e. current market environment). Royalty payments for copper production are calculated using the average LME price for copper for the 3rd month following delivery of the tailings(though this has been amended by agreement under the condition of launder structural problems and cut-back on tailings)
MVC also pays a royalty of 10% of MVC's net revenue received from sale of molybdenum concentrate.
Another variable will be royalties for copper extracted from Colihues which will be calculated on a sliding scale from 3% for copper price less than $0.80/pound to 15% at $1.30 and above,
Peace,
Good Decision-making to All,
ElJ