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Gold/Mining/Energy : The Molybdenum Discussion Board -- Ignore unavailable to you. Want to Upgrade?

To: David who wrote (1452)	11/29/2005 2:01:37 AM
From: jackjc	Read Replies (1) \| Respond to of 3267

If you mean the Hatch report of june 05, that mentioned an avg based on earlier dates than that. Roasters have been skimming big profits at the steep moly spot. Also would have to update for energy and materials costs. Pre-tax cash flow on around pp 246 with used equip and 500T/d showed sales of 41M-22M operating-4M capex, for 14M flow. BUT note that this is sales price to dealer, not spot moly, need to deduct roaster and ship. If roaster is 5.00 figure which I have seen, then you need 20+ for moly 1st mining yr (2 yrs away) and 15 for 3rd and 4th yr. ALSO this shows a mine life of 3 yrs for the hi-grade, and only gets back 10M of the 30M capex during the 3 yrs. If your read on this is different please correct this impression. To write down the capex faster, flow comes down. And can moly stay at those levels for that many yrs ?? Lotta cash to be raised. Anyway, I like their chances, and took an initial position. Interesting thing I noticed was the dealer buy contract shown. Showed tieing up the entire mine life with D.Raphael. Forced to sell to them at mkt prices, with only a hardship escape. (Perhaps this is only their dream contract, dunno.)