RE: RE: RE: RE: RE: Operating costs are 148$ / MTU Junior_minor, you calculate that both Capex (capital expenditures) and Opex (daily operating expenses) went up substantially. I am not sure I understand your logic in that regard.
Regarding Capex, on the company website with the April 2012 presentation, they again confirmed their "Sangong Project Financing" capital costs of 150M. The FS came in with Capex of 151.3M, so I don't see that as significantly higher. This higher amount also now includes the costs of stockpiling before production. The Capex can be repaid in 2.2 years--that sounds very good to me (much better than Muguk with a 60.2M Capex and a negative cash flow until year three).
Regarding Opex, I am still a bit unclear on the facts. The scoping study was based on $167/MTU Opex. Majormac estimates $171/MTU. You indicate that it could be as high as $200/MTU. Applying Majormac's calculation, that would only be a 2.3% increase in Opex since the scoping study. Applying your $200/MTU calculation, it would be a 16.5% increase in Opex. If your $200/MTU is correct, then I would agree that would be a substantial increase. We will need to wait and see regarding the Opex calculation because we just don't have all the facts, especially regarding the offtake agreement. Regardless, even applying your $200/MTU estimate, this company is still seriously undervalued with a .27 s/p. With 309M shares and an 83.4M market cap on a company that owns 75% of a 400M PV asset, this company could have a 300M market cap with just this one asset. The market seems to be discounting that market cap amount by 72%. I just don't see the risk justifying that much of a market discount, hence my frequent stating that eventually the fundamentals will win the day. Let's see where the dust settles by Friday afternoon.