Let's say we are soon at 2500 tpd (of 5000 tons per day mill capacity) and the average payable copper is 1.4% copper (after blending and recoveries) = 2,100,000 pounds of copper per month.
The profit (cash-flow) = $751,000 on the first 715,000 pounds (as previously shown) + (1,385,000 pounds X $1.84) profit of $2,548,000 on the not hedged part, for a monthly profit of $3.3 million.
Once past the hedge and producing at 5000 tons per month at 1.8% net copper, we get 5.4 million pounds per month which equals
- Gross sales of $20 million per month
- Net return of (profit) of $10 million per month = $120 million per year profit
Cheers,
Notgnu