$10.8 million from a truckload of ore and preempting TancoA big truck carries 28000 lbs, a standard one 14000 lbs or 7 tons. Let us analyze the 7 ton case. The ore grade ought to be 5% cesium (frewil11 Dec 9). That would contain 700 lbs Cs or 11200 ounces. Assuming about a 90% recovery we get 10000 oz. The big assumption is that Cs is a bit more valuable than gold or about $3000. Revenue then is 10000 x $3000 = $30 million or 30m for short.
Gold and Cs mining procedures have similar stages. Digging the or out, grinding and screening (XRT). Gold then is treated with the cyanide process, Cs separated by acid. Then refined to the final pure product. Gold AISC for the industry 2023 was $1388, about 50% of the gold price. Cs costs similarly should be about 50% or $15m. Assume another $3m for miscellaneous costs. Earnings before tax are 30 - 15 - 3 = $12m. Let taxes net of depletion etc be 10% or $1.2. Earnings after tax are 12 - 1.2 = $10.8.
How big is the truckload in volume? It is a cube 4.4 feet x 4.4 x 4.4. Calculation: a cubic foot of water weighs 62.4 lbs. The specific gravity of the ore is about 2.63. A cubic yard or just yard is 27 cubic feet. Multiplying gives a yard a weight of 4431 lbs or 2.216 tons. Then 7 tons has a volume of 3.16 yards or 85.32 cubic feet. The cube root is 4.4 feet. The size of my neighbors mulch pile.
Why am I anxious to see this being done? On Dec. 7 Trader53 noted that Tanco was considering buying a new $176 million concentrator so that it could get Cs from its 60 years of tailings. That would make it more of a competitor. I am hoping that this plan would show Tanco that our resource is so much better than their used up tailings that they would be discouraged from competing. And that Power is not diddling around.