RE:RE:TKO C1 Cash Costs (Total Operating Costs)Robert, that $12 million investment would result in $0.11 per pound of cost reduction (see below). C1 cash cost may drop from average $2.09 to $1.98 per pound, which is far above than your number of $1.5. Good improvement, but C1 cash costs are still high, Need Florence in commercial produciton to drop the average C1 cash cost for both mines combined to $1.5 per pound.
"W
e estimate at this juncture that $12 million invested over the next 12 to 18 months in our concentrators is going to reduce our cost per ton milled by approximately $0.45 per ton. On 31 million tons, that's a lot of money. It's roughly $0.11 per pound savings or approximately $14 million to $15 million per year. It's significant value enhancement. That $12 million investment has an NPV of roughly $80 million."