RE:RE:RE:RE:I,ll Give This A Crack What $90 million fixed cost? Your assumption? They aren’t building anything on the island.. simply digging crushing bagging and shipping... generally open pit mining is in the $10-$15 per ton range with cost of labor machinery and fuel nothing more.this is common knowledge in mining.. a comparison study was done a couple years back as to the total cost difference of a mine in Alaska ( 40,000 ton operation) and one in Arizona (100,000 ton) at the time cost in Alaska was $1.12 and Arizona was .063....yes prices are higher now... general cost per lb of copper per three valley copper which was an underground Operation thereby more costly was $1.63 per lb Canadian and that was in Chile. Yes we are on sommerset and yes diesel etc cost more now and higher there... that in itself has little bearing on the ease of mining this open pit crusher ready resource.. you are trying to make things more difficult than they are on purpose.. your agenda is plain to see as is your grudge...if you want to talk all in costs as you did state you weren’t but, then did.. fine.. shoveling, crushing bagging shipping and smelting will likely be in the $2-$2.20 a lb range just an estimate.. which means if they ship 10,000 tones and the price is $8000,($1000 less than now) a tonne at 53% it would be a $42 million per shipment of which just around $18 million would be profit.. no fixed costs are applicable.. $9000 a tonne is $47.7 million and profit would be over $20 million..
schocor wrote: martindale - it an assumption. there has never been any mining at storm which is on remote sommerset island.
but i will challange you to find me ANY copper mine that has a 50% margin on concentrate production; let alone a mine as remote as sommerset that has a comparable margin. actually, just fine me any mine of any size in ANY commodidy that has a 50% margin on concentrate production.
you issue here is the 1.8m tonnes of production on a gravel rig during a seasonal operation to meet the assumed $90m in fixed costs.