Does anyone remember if TC has said what their expected cash costs were going to be for copper & Gold--it seems to me I remember something about $674 for gold--is that what they expect? Wjat about copper???
Cash cost of the gold by-product? It's a false premise.
Here's why: Aside from the capital cost of the gravity circuit (a centrifugal gravity concentrator and shaker table) equip. to capture the courser gold particles, there are no incremental mechanical operations in MIlligans processing plant (mill) that specifically targets gold-only recovery. The only incremental costs to (enhance the) recovery of the gold within concentrate is the incremental cost of electricity to run this equip. The output of the gravity circuit is fed into the final concentrate. Most of the gold will come from the 3 stage floation circuits designed and constructed to recover the copper.
The processing plant of Milligan is largely designed to recover copper. Aside from tucking a gravity circuit between the initial rougher/scavenger floation and rougher/scavenger cleaner floation circuits, they do nothing different to capture gold.
Post-production, the only cost to capture the gold from the final concentrate will be smelting fees, and these certainly won't run $647/oz. More like $15/oz.
Copper will be $0.22/lb, after gold by-product credits, using latest projected costs from the company.
Want fun with math? Split out Milligan expected costs by the rev. contributions of each of the copper/gold/silver metal streams expressed as a %, gold will represent about 46% of total rev. at current prices for all three metals. Dividing 46% of the $280mm anticipated annual cash costs of Milligan into the ozs. expected to be produced annually during the first six years of production (262,000 oz./annually) yields about $500 oz.
But since the Milligan mill is designed largely for copper production, such exercises in cost segregation are just fun examples of math. Why? Because if Milligan's resource contained no gold, they would have to design essentially the same mill to operate, save for the gravity circuit (which only cost $20mm).
I don't have the numbers right here in front of me, but expect them to vary a bit once Mt M is up and running. I do suggest you go to their website and listen to the last CC, and also the last presentation for JP Morgan - there are some good slides and some good nuggets of information contained in both...