RE: RE: Update Firstly, a 20% increase in throughput does not directly equate to a 20% increase in production, you have some other variables, such as grade and recoveries. Their production guidance (today) is unchanged from what was last provided. These are the factors I take into account when determing risk. Not sure why baseless pumping is okay, but providing opinions based on facts and estimates is being a basher or doomsdayer. The sp is low, the risk is high, but if they pull it off that risk will be rewarded. I just don't see the current risk-to-reward as even comparable to the last time the sp was at this level.
Here are my numbers for 2013.
Mining and milling costs= 211 million (assumes a 25% cost reduction per new ton per day rate; not Q4 was 55 million)
FSR = 42 million (based on ratio of 2012 cu eq sales and project 2013 cu eq production)
Cost of Sales= 253 million
Other costs
Admin and Exploration = 11 million
Finance expense =10 million
Total ML expenditures before loan repayment and capex = 274 million.
Revenue
Moly 11.5 million pounds at 10.9 per pound =125.3 million
Copper 40.5 million pounds at 3.15 per pound= 127.6 million (assumes 3.42/lb unhedged copper
Silver =3.8 same as 2012
Total Revenue=256.7