TI1 back down to the low 3 cent range. Went through this quarterly to see if they’ve enlightened us as to anything to do with their costs or revenues or grades now that they are officially in commercial production (unfortunately they didn’t really enlighten me). $68 million MC, 28 million in the bank. Roughly values the mine and future production at $40 million on my calculator.
Very roughly rounded rough Q2+Q3 Results:
350,000 tonnes produced – Increase Q on Q – That’s good – but what about the grade?
200,000 tonnes sold – Building a stockpile b/c costs are high. Ok. Understandable. 300,000 t stockpile now – but again at what grade?
$16,000,000 in cash outflows
$18,000,000 in cash inflows
Seems like a very reasonable $45/tonne costs on produced iron
Seems like a rather poor $90/tonne revenue on sold iron – but potentially a good margin if grades hold up.
Still happy to watch this one. I’m working on the assumption that the grades of the stockpile is rather low grade and there might be some accounting purpose to hold a large stockpile on the books on June 30th? But just a guess.
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