Almonty Industries Inc T.AII

RE:RE:RE:RE:RE:Processing Two Ores

[QuarterDollar]

• @Blueskies, I used today's price of $19.25 (so that addresses your point of higher moly prices) and I am using a moly cost of $6 per pound which is higher than the $106 MTU price for tungsten. Still, profit maxes at $42M if Almonty produces 3M imperial tons of Moly which would require 600K metric tons of Moly Ore to be processed.
• At max capacity for Tungsten, the mining equipment will process 1.2Mt. Can it support another 600kt of Ore? Meaning the mining equipment has to process 1.8Mt per year.
• I don't think LB sized it that big or did he????????
• Assuming Moly prices hold, Moly profit is majorly restricted by the amount we can process with existing mining equipment and how much Posco is willing to contractually purchase.
• Bottom line, we will be lucky to get $10M - $30M profit annually....that's the way I see it, but any profit is always welcome.

• It would be in Posco's best interest to buy from Almonty, even at market prices because they would save on delivery costs. But in the interest of diversifying risk, Posco wouldn't buy all of its Moly from us.

• Can anyone find out how tons of Moly Posco buys each year?  I have my reservations they only purchase 3,000 tons.

• On a related note, LB needs to negotiate another floor-price deal with Posco to ensure our moly profitability. Otherwise we will be at the whim of the market.