Lumina Copper Corp LCPRF

Recovery Grade Improvements

[eebler]

If you assume that 100% of the current estimate is mineable (rarely the case, but assume it for now) then the improvement in recovery grades announced today based on the current resource size translates roughly as follows:

- avg increase of 5% copper recovery produces an additional 435M lbs of copper
- avg increase of 17% moly recovery produces an additional 57M lbs of moly
- avg increase of 23% gold recovery produces an additional 683K ozs of gold

Base case values from recent PEAs values seem to run around:

- $2.25 / lb copper
- $15 / lb moly
- $1015 / oz gold

Which means economics of Taca Taca just improved by:

- 2.25 x 435,000,000 = $978 M
- 15 x 57,000,000 = $855 M
- 1015 x 683,000 = $693 M

Total Revenue Increase = $2.5B

Figure a very conservative cash cost of 50% of the metal vaue, and that should mean an additional $1.25B in operating margin.  And to again be conservative, figure half of that disappears for taxes, royalties, admin, etc., so it still produces an extra $600M or so of net income. 

Math right?

eebler

[mudguy]

You put to numbers what I was thinking as I read the NR.  I don't see any errors in your calcs.  Thanks!

[elmothefearless]

This is incredibly good news!  700,000 more oz's of gold is very material.  Not to mention, with the recent deep intercepts they have been hitting, it looks like a new NI 43-101 will materially increase the size of the resource.  So the actual impact on the resource, once we have a new NI 43-101, will be even greater..This addressed one of my biggest worries about LCC, that

[Helios]

The great news just keeps on coming. Can you imagine if the market was moving the other way? Thanks again for all your feedback and insight into LCC. This company is the only stock thats keeping me above water this year.Helios