RE:IPO implications on Cash CostsHaving slugged through all 750 pages, I can confirm that the reduction in cash costs subsequent to the expansion of the open pit mine is very conservative.
Recall that I assumed a blend of current grades,,,0.60 gms/ ton ..and new drill exposed grades of 1.16 gms per ton that would reduce cash costs by 45% from current levels.
A table in the HKEX listing submission shows that the average grades once the new ores are mined will be their actual grade of 1.16 gms per ton versus 0.69 gms per ton currently .
That is, SRK Feasability reports that the cash costs will decline from about $185 per gram mined to about $85 per gram mined .
In other words, current cash costs, already very low by peer standards , will be just half of current levels which would raise gross margins to about 85%.
This would place MJS well into the top 10% of lowest cash costs in the world .