CPRK Ramping Up Production at Its Milford Mineral Belt Property - www.CaesarsReport.com
Copper King started its milling operations in September, and is currently ramping up production towards its mill capacity of 5000 tonnes a day. It currently works at a 2200 tpd rate (44%), as part of the soft startup plan for the mill. Calculations bring the projection of a net revenue to around 44 million USD. With fixed costs estimated at roughly 10M USD a year, the company would turn cashflow positive. For the full report, subscribe Free at www.CaesarsReport.com
Milford, UT, October 24, 2009 --(PR.com)-- Copper King Mining Corporation (Pinksheets: CPRK) ("Copper King" or the "Company") is ramping up its production towards its 5000 tonnes per day mill capacity. The mill currently works at a 2200 tpd rate (44%), as part of the soft start-up plan for the mill. The company hopes to reach the 3375 tpd (67.5%) rate at the end of this year.
Copper King Mining has an agreement with RBS Sempra Metals & Concentrates LLC, wherein is stipulated that Sempra Metals, the base metals investment vehicle of the Royal Bank of Scotland, will purchase the entire production of Copper King’s mining activities. This agreement lasts four years.
At a 3375 tpd rate (without magnetite credits), Copper King Mining would produce some 25 million pounds of copper annually, good for a net revenue of almost 36M USD, at a copper price of 2.50 USD/lbs, based on a 340 days a year working mill.
The company currently estimates the cash costs per lbs copper on 1.10 USD. That’s fairly low looking to its peers in the sector. In the estimate of 1.10 USD/lbs, the future magnetite revenues aren’t included yet. As management estimates magnetite has a grade of about 30% (with an output purity of 65%), revenues could be significant. Using this 30% estimate, at a 3375 tpd rate, Copper King should see a daily production of 800 to 900 tonnes magnetite, and 33 tonnes of copper.
With a long-term projection of the spotprice at 50 USD/tonne magnetite, and only 500 tonnes magnetite a day, the cash costs for copper should drop towards only 75 cents a pound.
Taking al numbers into account, a net revenue of around 44 million USD is projected.
Fixed costs are estimated at roughly 10M USD a year, so the company would turn cashflow positive.
Their recently bought solvent-extraction electro-winning plant (SX/EW) would increase the copper they get out of the ore from 55% - 65% now, to 90%. The company plans to have it operational within the next 12 months.
Copper King has recently appointed an accounting firm to make the company full-reporting, making it able for them to move away from the Pink Sheets, probably first to OTC-BB, to move higher, later on. Full financial reports are expected to be available from Q1 2010/ Q2 2010.
For the full report, subscribe Free at http://www.CaesarsReport.com
Disclaimer: The CaesarsReport.com employees, Caesars Report ("We") are not Registered as an Investment Advisor in any jurisdiction whatsoever. CaesarsReport.com employees are not analysts and in no way making any projections or target prices. Neither the information presented nor any statement or expression of opinion, or any other matter herein, directly or indirectly constitutes a representation by the publisher nor a solicitation of the purchase or sale of any securities. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. The owner, publisher, editor and their associates are not responsible for errors and omissions. They may from time to time have a position in the securities mentioned herein and may increase or decrease. The author has a long position in Copper King Mining Corporation. Please always do your own research. All information was provided by the company. This report is based on the answered questions we asked during the interview, meaning these facts and numbers are entirely based on management statements. Please note this is a Pink Sheets company, which does Not report to the SEC, or publishes annual or quarterly reports. For the full disclaimer, visit http://www.caesarsreport.com/discl.html
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Copper King Mining has an agreement with RBS Sempra Metals & Concentrates LLC, wherein is stipulated that Sempra Metals, the base metals investment vehicle of the Royal Bank of Scotland, will purchase the entire production of Copper King’s mining activities. This agreement lasts four years.
At a 3375 tpd rate (without magnetite credits), Copper King Mining would produce some 25 million pounds of copper annually, good for a net revenue of almost 36M USD, at a copper price of 2.50 USD/lbs, based on a 340 days a year working mill.
The company currently estimates the cash costs per lbs copper on 1.10 USD. That’s fairly low looking to its peers in the sector. In the estimate of 1.10 USD/lbs, the future magnetite revenues aren’t included yet. As management estimates magnetite has a grade of about 30% (with an output purity of 65%), revenues could be significant. Using this 30% estimate, at a 3375 tpd rate, Copper King should see a daily production of 800 to 900 tonnes magnetite, and 33 tonnes of copper.
With a long-term projection of the spotprice at 50 USD/tonne magnetite, and only 500 tonnes magnetite a day, the cash costs for copper should drop towards only 75 cents a pound.
Taking al numbers into account, a net revenue of around 44 million USD is projected.
Fixed costs are estimated at roughly 10M USD a year, so the company would turn cashflow positive.
Their recently bought solvent-extraction electro-winning plant (SX/EW) would increase the copper they get out of the ore from 55% - 65% now, to 90%. The company plans to have it operational within the next 12 months.
Copper King has recently appointed an accounting firm to make the company full-reporting, making it able for them to move away from the Pink Sheets, probably first to OTC-BB, to move higher, later on. Full financial reports are expected to be available from Q1 2010/ Q2 2010.
For the full report, subscribe Free at http://www.CaesarsReport.com
Disclaimer: The CaesarsReport.com employees, Caesars Report ("We") are not Registered as an Investment Advisor in any jurisdiction whatsoever. CaesarsReport.com employees are not analysts and in no way making any projections or target prices. Neither the information presented nor any statement or expression of opinion, or any other matter herein, directly or indirectly constitutes a representation by the publisher nor a solicitation of the purchase or sale of any securities. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. The owner, publisher, editor and their associates are not responsible for errors and omissions. They may from time to time have a position in the securities mentioned herein and may increase or decrease. The author has a long position in Copper King Mining Corporation. Please always do your own research. All information was provided by the company. This report is based on the answered questions we asked during the interview, meaning these facts and numbers are entirely based on management statements. Please note this is a Pink Sheets company, which does Not report to the SEC, or publishes annual or quarterly reports. For the full disclaimer, visit http://www.caesarsreport.com/discl.html
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