RE:RE:RE:q price adj and more
Good cost overview sclarda!
I would like to add, that at a copper price of 3.4$, the royalty should be 0.72$, 0.86$ for the fresh tailings and Cauquenes, respectively. At 3.3$ copper, those change to 0.68$ and 0.82$.
Additionally, ARG has some sustaining cost (used to be around 6M$ per year) and G&A (ca. 2M$). The last two years, they also invested some additional CAPEX (e.g. to increase water recycling). But these are expenditures that can likely be cut/delayed when money is tight.
I wouldn't go that far, that ARG is fu#cked at 2.8$ - 2.9$ copper, but the dividend cleary wouldn't be sustainable and copper shouldn't go a lot lower than that for ARG. On the other hand, I always liked the strong support, ARG used to get from large investors and Codelco, when it was in trouble. That certainly was an important reason for me to invest here at that time. You just have to look, what ARG went through already and it survived. We all don't know, how the global recession will evolve, but I guess we are all here, since we believe in (longterm) copper. An in contrast to earlier days, ARG today has some cushion for bad days...
GLTA