Toll milling Copper Concentrate at Nugget Pond Mill Let's take the scenario that Firefly can drill define a copper resource of 3% copper at Ming which might be quite possible given Ramblers drilling data and the 9% copper achieved by Firefly by its initial drilling assays.
Current copper price is $8200 US per ton which I will round to $10,000 CAD per ton.
I assume that an ore separator will be installed at the Ming mine achieving the test results of Rambler....29% reduction in ore volume needed to be milled.
This will effectively increase the copper grades entering the Nugget Pond mill to 3%** 1.29 = 3.9 %.
So, 330,000 days ** 700 tpd = 230,000 tons per year of copper concentrate @ 3.9 % copper = 9000 tons of copper + gold concentrate per year which @ $10,000 cad per ton = $90 million in gross tolling revenue per year .
Tolling fees are typically about 12 % of gross which computes to about $10 million CAD in tolling fees to MAE per year .
Net tolling margins are about 8% which computes to net earnings of about $8 million per year to MAE.
At 10 times peer multiple, the Nuggett Pond mill tolling earnings would value this asset at about $80 million cad or about $0.15 per FD share.
As I posted earlier, Firefly have very ambitious objectives to move to become a mid tier copper producer .....25000 + tons per year .
MAE have the excess milling capacity that will move them substantively towards that objective....and the nearby deep water port and storage facilities at Point Rousse to substantially increase operating margins relative to trucking all of that concentrate an extra 200 km per ton to Goodyears Cove...
A marriage made in heaven..