Chapter 163 Negotiations

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This time, BHP Billiton came to negotiate with Sam, and it was still Tony, who was kicked out by Hansen and them with a gun last time. Martin, though, was taken by Wolf. Peterman used a modified M500 revolver to shoot Mel, who was so frightened that he almost peed his pants. Hobbes, but he didn't have the face to follow him anymore.

Last time, Hansen and the others taught BHP Billiton a lesson with ironclad facts, and when they returned here again this time, the arrogant and domineering demeanor of the past was gone, but more modest. Especially when he looked at Hansen and the others, there was even more fear in his eyes.

As BHP Billiton's Ministry of Mining, these people used to be rampant in Australia, usually no matter where they go, people are high and far away, even if they have encountered some unwilling to cooperate, but they are not like these big men, not a word, directly take out a 12.7 mm caliber sniper and shoot!

These guys still remember the miserable appearance of the desert prince, a good car, the front of the car was completely broken, and the engine and everything were scrapped! If only this shot hadn't hit the front of the car, but had hit Mel. Hobbes's body, it is estimated that Mel's guy will have to be cut in two on the spot!

This gang of murderers can't be messed with!

This is Tony. Martin came to the common idea in the hearts of these people.

However, Tony. Although Martin's gang was afraid of Hansen and them, they did not give up an inch of land when negotiating, and they fought for every penny.

"Mr. Mendes, is there any evidence for the sale price of two billion dollars that you are proposing? Do you say two billion dollars, and we have to pay for this mine? ”

"Hehe, Mr. Martin, do you know the average mining cost of gold mining in the world at present?" Sam was not in a hurry at all, and asked with a smile.

This kind of question can't help but bother Tony. Martin, "Mr. Mendez, I don't know what you're asking such a simple question, but I can answer you. The highest mining costs are now in Africa, where the average direct mining cost per ounce is US$957, followed by Asia at around US$824 per ounce, and the lowest direct mining cost is in Nevada, USA, where the direct mining cost is only US$598. As for Australia, the average direct mining cost per ounce of gold is US$746. ”

Sam clapped his hands with a smile: "Mr. Martin is worthy of being the chief negotiator of BHP Billiton's mining department, and this kind of data comes as soon as he opens his mouth." However, since you know so much about these data, Mr. Martin, I would like to ask you again, what is the cost of mining the whole gold if you add in the additional costs of gold concessions, management fees, foreign exchange hedging, etc.? ”

This kind of problem still bothers Tony. Martin, "Last year, the average gold mining cost of the world's top 10 gold mining companies was about US$935 per ounce, and based on last year's gold price, the average profit of the top 10 gold mining companies was about US$313 per ounce of gold, which is about 15% lower than the year before, which was in 2013. It is estimated that this year's gold mining industry will be the same as last year! ”

"Well, Mr. Martin, if I tell you that this vein of our Tang Mining Company can reduce the cost of ASIC to $750 per ounce, how much net profit do you think you can make by taking over such a gold mine with reserves of more than 200 tons and a silver deposit of 4,000 tons?" The so-called ASIC cost, or "total sustainable cash cost", refers to the direct cash cost of gold mining, plus various incremental costs such as royalty mining fees, management fees, foreign exchange hedging, etc.

Sam's right index finger rhythmically tapped on the table in front of him, paused slightly, and said: "According to the results of the exploration of the explorer company, this vein buried only twenty meters deep can be mined by open-pit mining, and the grade of this mine is extremely high, so the mining cost will be very low." Our engineers have calculated the overall cost of mining and have come to the conclusion that the ASIC cost of this mine will never exceed $750 per ounce. In other words, the mining cost of this vein worth 12 billion US dollars only accounts for about 65% of the value of the entire mine, in other words, if this mine is in your hands, it can create a net profit of more than 4 billion US dollars for you in the next five to six years! Now, we at Tang's Mining have only offered you two billion dollars for a sale, isn't that high? Even if you buy this mine at that price, you can make a net profit of up to $400 million a year for the next five or six years. I'm afraid that this state of profitability has never been reached by your Cannington silver mines! ”

Sam's remarks are well-founded, and they are directly based on the most fundamental profit and mining costs, so there is no room for refutation. Although Tang Feng asked Sam to say that BHP Billiton could reduce the price, and the reserve price was also opened to 1.5 billion US dollars, Sam did not do this, after all, the power of those lawyers was somewhat unexpected, since the effect was so good, why should he take the initiative to reduce the price?

"Mr. Mendez, I admit that what you have said is very valid and indisputable. However, there is one thing, all of what you said is based on the survey results of the Explorer Company, and I know that you and the Mr. Tang behind you have been employees of the Explorer Company before, so your inference should be untenable in this negotiation! ”

"Hehe, in that case, you don't trust the business ability and professional ethics of the explorer company?"

"No, Mr. Mendez, Explorer is also very famous in the mining industry around the world, I admit it! However, this kind of negotiation cannot be based solely on the data from a survey company, and we must survey the vein by BHP's own survey company. I think it's the data that our two survey teams have together that should be the basis for this negotiation. What do you say, Mr. Mendez. ”

Sam shrugged his shoulders noncommittally and said, "Mr. Martin, if you don't make this suggestion, I will take the initiative." I know very well that for a company like BHP, what you trust most is the data from your survey team. Okay, that's no problem at all, your survey team can enter at any time to conduct a survey! ”

With Sam's words, today's negotiations came to an end for the time being, and BHP's survey team settled in the Tang mine as soon as possible and began to conduct the most careful survey of this vein. In fact, BHP's survey team entered the mine, which was also related to Tang Feng's instructions. After all, this mine was first surveyed by the explorer company, but since Tang Feng had decided to move this mine, it would inevitably have a great impact on the reputation of the explorer company. But now that BHP Billiton's direct survey team has entered the survey, relatively speaking, the impact on the explorer company will be reduced a lot, after all, the result that Tang Feng is preparing to do is absolutely incredible. In addition, there is a super oil field in Beaumont waiting for the explorer company to "survey out", so if the oil field that is about to be "explored" in Beaumont is added, the reputation of the explorer company will not only not decline, but will still be extremely strong!

This is a super precious metal mine, and there is no room for BHP Billiton to be sloppy. As a result, BHP's survey team is preparing to drill more than a dozen survey wells for more detailed data collection on this vein alone.

In addition to continuing to drill exploration wells next to the five wells drilled by Explorer, BHP's survey team is also preparing to drill six to eight more exploration wells in other locations to obtain more detailed data!