mine c1 cash cost model (july 2012)
DESCRIPTION
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Introduction to the C1 cash cost model
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Important Notes
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For more information contact:
Introduction to the C1 cash cost model
The purpose of this C1 cash cost model is to assist investors and analysts in understanding the composition of a mine's C1 cash costThe model has been designed to allow users to make estimates of C1 cash costsThe model can be developed and expanded for further analysis and improved evaluation
Important Notes
The data and assumptions used in the C1 cash cost example have been compiled by Nyrstar and are for illustrative purposes only. The data and assumptions used are not specific to mines under Nyrstar ownership or owned by other operators
For simplicity, average metal recoveries (rather than recoveries of metal per concentrate) are required to be entered for this C1 cash cost model
For more information contact:Anthony SimmsGroup Manager, Investor RelationsTel: +41 44 745 8157, Email: [email protected]
Jaideep ThataiSenior Analyst, Investor RelationsTel: +41 44 745 8103, Email: [email protected]
The data and calculations included in this modelling worksheet are for informational purposes only. Users should not rely on information in this worksheet for any purpose other than gaining a general knowledge of how to calculate a mining C1 cash cost. This worksheet may be changed or updated without notice.
Wood Mackenzie Limited defines the C1 cash cost as: - the costs of mining, milling and concentrating, on-site administration and general expenses, property taxes, metal concentrate treatment charges, and freight and marketing costs less the net value of by-product credits- does not include indirect costs (such as corporate overheads) and royalties
The C1 cast cost for a mine can vary period on period due to a number of factors, such as:- commodity prices, which impact the level of by-product credit achieved- mine campaigns which will target different ore areas/bodies and therefore potentially change the concentrate production mix- different shipping destinations and shipping terms which will impact freight rates- changes in commercial terms on the sale of concentrates- whether C1 cash costs are reported on a production volume or sales volume basis
Mine C1 cash cost modelUoM
Commodity and commercial terms / assumptions
Metal Prices
* Zinc USD/t 2,000* Lead USD/t 2,000* Copper USD/t 7,500* Gold USD/troy oz 1,500* Silver USD/troy oz 25.00
Average Payable Metal (after minimum deductions)
Zinc % 75%Lead % 75%Copper % 75%Gold % 75%Silver % 75%
Treatment Charge (TC) / Refining Charge (RC)
* Zinc % of zinc price 10%Lead % of lead price 10%Copper % of copper priceGold USD / t ozSilver USD / t oz 1.00
Production assumptions
Production
Ore Throughput tonnes per day 1,500Operational days p.a. days 340
* Ore Milled t 510,000
Mill Head Grades
* Zinc % 5.00%* Lead % 2.50%* Copper %* Gold g/t* Silver g/t 75.00
Recoveries
* Zinc % 90.0%* Lead % 90.0%* Copper %* Gold %* Silver % 60.0%
Metal produced
* Zinc contained in concentrate t 22,950* Lead contained in concentrate t 11,475
* Copper contained in concentrate t -* Gold t oz -* Silver t oz 737,871
Concentrate grade
Zinc % 55%Lead % 50%Copper %
Concentrate tonnes
* Zinc concentrate dmt 41,727* Lead concentrate dmt 22,950* Copper concentrate dmt -
Cost assumptions
Operating Cost
Operating Cost/t ore milled USD/dmt 75.00Freight Cost/t total concentrate USD/dmt 100.00
C1 Cash Cost calculation
C1 Cash Costs (/t payable Zn)
Operating Cost USD/t payable 2,222TC (zinc only) USD/t payable 485Freight (all concentrates) USD/t payable 376
* Gross USD/t payable 3,083
Lead USD/t payable (733)Copper USD/t payable -Gold USD/t payable -Silver USD/t payable (761)By-Product Credits USD/t payable (1,494)
* Net USD/t payable 1,589
KEY
Input field
Calculated field
t = tonnes
g / t = grammes per tonne
t oz = troy ounce
grammes to troy ounces 31.103
dmt = dry metric tonne
* Data which is reported by Nyrstar in its Interim Management Statements and/or Half Year and Full Year Results