2021 Start-up production estimate (underground only)

 

2nd quarter: April, May, June:

  • Average blended grade of 1.3% copper
  • Average mining and milling rate 3000 tpd
  • Average $4.10 copper
  • Hedge portion of 2,100,000 pounds 
  • Production over and above the hedge of (3000 tpd X 1.3% copper X 90 days X 2000 pounds per ton X 90% recovery = 6,300,000 pounds minus the hedge = 4,200,000 pounds 
  • 4.2 million pounds X $2.24 per pound (after all in cost) = $9,400,000 plus about $2,250,000 from the hedge
  • = $11,600,000 free cash flow

3rd quarter: July, Aug, Sept:

  • Average blended grade of 1.6% copper
  • Average mining and milling rate 4,500 tpd
  • Average $4.20 copper
  • Remaining hedge portion of 1,000,000 pounds 
  • Production over and above the hedge of (4500 tpd X 1.6% copper X 90 days X 2000 pounds per ton X 90% recovery = 13,000,000 pounds minus the hedge = 12,000,000 pounds 
  • 12 million pounds X $2.34 per pound (after all in cost) = $28,000,000 plus about $1,000,000 from the hedge 
  • = $29,000,000 free cash flow
4th quarter: Oct, Nov, Dec:
  • Grade 1.9%
  • 5,000 tpd
  • No hedge
  • $4.30 copper
  • 5000 X 1.9% copper X 90 days X 90% recovery = 15,400,000 pounds of copper =
  • 15,400,000 X $2.44 per pound (after all in cost)
  • = $38,000,000 free cash flow
Full start up year free cash flow 
  • = $78,600,000 divided by 1.8 b shares = $.044 per share free cash flow
  • *** Note: compare that to market cap! ***

DYODD,
Cheers,
Notgnu