Re: Just for the record
posted on
Nov 25, 2010 11:01AM
What you fail to mention is that the 'Huge' resource of NDM's Pebble is averaged at 0.8% copper equivalent. That is 17 lb. and worth about $50 per ton.
That in itself has little meaning until you consider the cost of extracting that ore from the ground and then processing. That cost should be at least and probably well above that $50.
In other words that huge resource is borderline profitable and awaits much higher metal prices to be a valid mine.
Eagle's Nest is the opposite.
It is approx. 6 times the value of the cost of processing the ore. Even if metal prices should drop to half of present values it is still a very prifitable venture.
Just consider profits ( before taxes etc. ) of 80%.
Most people would chew off one of their arms to have such assets.
I'm affraid you made a poor comparison. Obviously distracted by the size of NDM's deposit before considering it's profitability.
Just some rain on your parade, Sorry.