Post by
AlfTanner on Mar 27, 2024 11:10am
The numbers no longer work
Greg promised 70k ounces per year from a 4 module factory. Based on what we have been told about module 1, this is impossible. Here are the numbers.
When module 1 is running 2 shifts in June, they hope it can produced 5000 pounds per day with 80% availability. In a week, this would be 5 x 5000 x 80% = 20,000 pounds per week or 9 tonnes per week.
The feed stocks is expected to be low grade and mid grade. Low grade is 200-500 ppm, and mid grade is 500-1200 ppm. Guaranteed the majority will be the low end of low grade. I think an average of 400 ppm is probably all we can expect.
Production at 400 ppm would be: 400 grams/tonne x 9 tonnes/week x 95% recovery = 3400 grams pwer week or 109 ounces per week. Assuming 50 weeks/year, that would be 5450 ounces per year.
With 4 modules, you get 5450 x 4 = 22k ounces per year.
22k ounces per year at $900 per ounce for platinum gives $20M in sales per year.
Then subtract the costs.
Cost of procuring catayltic converters = 50% or $10M
Cost of labor = 80 employees @ $65k each for wages and benefits = $5M
Cost of chemicals & supplies = $2M
Overhead cost = $8M
Total costs = $25M
Expected loss per year = $20M - $25M = $5M loss per year.
The economics just does not work with these numbers.
Comment by
AlfTanner on Mar 27, 2024 11:57am
There is no way in heck you are going to get that midpoint grade of 700 ppm. The supply available is heavily skewed toward the low grade. Even 400 ppm is probably optimistic. Just look at what they have been doing so far. They are currently doing the very low grade because that is what is available. The higher grade stuff goes to the refineries.