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Compliance Energy Corp CPYCF

Compliance Energy Corp Is a Canada-based exploration and development company. The company is engaged in the exploration and development of resource properties. The firm is an exploration and development company working on resource properties it has staked or acquired, principally on Vancouver Island. It has interest in Comox Joint Venture (CJV), which holds the Raven Underground Coal Mining Project (Raven Project).


GREY:CPYCF - Post by User

Comment by 2guyson Feb 08, 2013 3:29pm
95 Views
Post# 20960824

RE: :)...Raven Production Costs...

RE: :)...Raven Production Costs...

c01mustard, true coal prices have declined for both thermal and metallurgical coal, but one shouldn't look solely at today's prices, but those of when the mine is scheduled to open sometime in 2014.  Coal prices look to be ranging just above $200/t for premium coking coal and $95/t for premium thermal coal.

 

Coal markets aren't as bad as one would think and with an average operating cost of CDN$76.50 per tonne of saleable coal, consisting of 88% Met and 12% Thermal Raven would be profitable even today, IMO.

 

I don't have the breakdown for the costs for Met and Thermal individually, but whatever their product, Raven will make money, and with prices expected to stay well above Raven's costs, I have no doubt shareholders will do well if the EA approves the project.  JMO

 

https://minespricesmarkets.blogspot.ca/2012/09/coal-price-outlook-seen-for-2013-2014.html

 

The following is from CEC's PFS of 2011:

 

Mine operating Costs

The mine operating costs reflect a typical room-and-pillar operation with conveyor transport to surface and coal processing at surface. On-site costs consist primarily of workforce costs and also include operating supplies, maintenance parts and supplies, electric power, water treatment, roof bolts and all other mining and processing materials. On-site costs are estimated to average CDN$61.02 per Mt of saleable coal. Offsite costs include coal loading and transportation, port costs, corporate general and administration, sales commissions and royalties. Off-site costs are estimated to average CDN$15.48 per Mt of saleable coal, resulting in a total average operating cost of CDN$76.50 per Mt of saleable coal, FOB Port Alberni.

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