A Better Approach To Cost ComparisonEarly this morming I attempted to convert USD production cash costs to a CAD equivalent and accidentally inverted the USD/CAD conversion factor. I did this because the cost numbers were presented in CAD in the 2013 PEA. A better approach is to dump the CAD and compare production costs in terms of USD.
In 2018 we have $6,000 USD per tonne / 2,204 = $2.72 USD per pound.
In 2013 we had $3.23 CAD per pound at an exhange rate of 97 cents.
So at the time the PEA was produced the USD cost of production was 0.97 * 3.23 = $3.13 USD per pound.
View in this way, it appears that FPX has achieved a cost reduction of $3.13 - $2.72 = 41 cents per pound. This works out to a 13% cost reduction per pound.