RE:RE:RE:RE:4 bucksI read the PEA again .. and yes the revenue is based on USD$3 lb copper ....... and USD$1200 oz gold, mineral processing recoveries to concentrate, smelter payability terms, arsenic penalties, royalty deductions and corporate tax).
The USD$3 lb copper and $1200 oz gold used in the PEA were forecasted metal prices when production starts. But copper is already at $3 and gold at $1300 now; so for sure the updated PEA will use higher base costs for copper and gold. .. So my point is still the same, the updated PEA will have higher revenue (valuation) than the PEA published last March assuming other factors do not change. Many copper research analysis of supply/demand all point to demand higher than supply for the next five years due to additional copper usage from electric vehicles and other new usages.
The PEA published in March 2016 contains only indicated and inferred resources. Per the new CEO, large portion of these resources will be converted to proven reserves. So this can be huge because there is much more certainty on the grade and size of the resources. And proven reserve is given a higher valuation than indicated and inferred resources.
My takeaway from the PEA published last March is that there are no show stopper issue that prevent Timok from becoming a mine. I believe any big project will have issues. My hope is the new CEO along with his team will prevent/resolve these before production which is a few years away.