MY EARNINGS CALCULATIONS LOTS OF DETAIL HERE SO READ CAREFULLY
NOTE :::: EVERY SCOOP OF EARTH PROCESSED HAS MOLY IN IT AS WELL, WHICH ISNT BEING INCLUDED IN THE SALES FIGURES
Calculations are done with current APT price $437 / MTU
Raw tungsten is a 25% discount to APT price on average = $327.75 / MTU
SANGDONG mine EARNINGS-
woulfe 75% ownership
Offtake 25% ownership
(1,200,000 Tons Annually of resource filled rock processed) @0.45%WO3/per ton average grade = 5400 tons WO3
(Note the moly mix isnt being added to the value!)
APT(ammonium paratungstate) is priced in $/MTU. MTU is Metric Ton Unit. 1 MTU=10kg. 10 kg equals 22 pounds /short ton unit stu=20 lbs
1000 kilograms in a ton = 5400000 kg / 10kg per MTU = 540000 MTU
Brian predicts high 70% recovery and competitors seem to be around the 80% mark
(540000 MTU) X 80% recovery = 432000 MTU
SANGDONG RAW TUNGSTEN sells to APT PLANT (APT = $437/MTU) TIMES 75%
So with 432,000 MTU x 327.75= $141,588,000
$141,588,000 minus production costs of $82,620,000 (170 per MTU)=$58,968,000
woulfe gets 75% of $58.968 million = $44,226,000
IMC gets 25% of $58.968 million = $14,742,000
(432000 MTU) X $437current APT spot price= $188,784,000 per year
taxes, labour, other maintenance expenses
Estimated break even point Brian Wesson mentioned on the conference call and has been show in their presentations is $170
at a high estimate per MTU
So 486000 X $170/mtu = $ 82,620,000 (USED TO SUBTRACT FROM PROFIT IN SANGDONG MINE)
APT price 437MTU- 327.75 costs for sangdong ore leaves $109.25 / MTU GROSS FOR APT JV PLANT to sell to IMC
The profit will be 109.25 x 432000 MTU = 47,196,000
operating expence is used in the sangdong mining part (have to adjust minorly)
woulfe gets 45%= $21,238,200
IMC gets 55%= $25,957,800
Total net income per annum at 1.2MTA approximated for both parties
WOULFE = $65,464,200 (62% of profit )
IMC = $40,699,800 total (38% of profit )
woulfe / IMC combined earnings = $106,164,000 total profit per annum