Help please with the maths and the validity of the assumptions?
900,000 tonnes of oxide ore to be mined per annum (minimum IMIDRO will accept?)
Capital cost $120m (Khandiza needs pre-production capital of $80m to process 650,000 tonnes of ore per annum)
Concentrate production from 900,000 tonnes of low grade ore: 40,000 tonnes of concentrate? (total guess: no idea how you calculate this. I've not multiplied the average grade by the ore quantity)
Zinc metal production from 40,000 tonnes of concentrate: 30,000 tonnes (total guess: no idea how you calculate this, but the smelters can't be 100% efficient? and the concentrate has impurities/waste in it?)
If URL had a market cap. of $40m (US), it would need a 3 for 1 placing/rights? or a 2 for 1 with $40m raised as debt? Doesn't sound inconceivable to me. Assuming IMIDRO reaches a better revenue sharing agreement on the ownership issues and withdraws the letter cancelling the agreements, then Union could have positive cash flow by end of 2008? Any thoguhts please. Appreciated producing 30,000 tonnes of zinc per annum is a far cry from the optimal case of 400,000 tonnes p.a.
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