SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : International Precious Metals (IPMCF)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Zeev Hed who wrote (2389)2/15/1997 4:36:00 PM
From: Eric Tai   of 35569
 
Zeev,
They will not kill for a $75 /ton process because they not go ahead
with a $30 /oz "generous" profit margin. With a $330 /oz gold you mentioned, no gold project will start with a cost of $300 per oz.
No one will finance a hundred million dollar project to earn
10% before tax margin - which is at the mercy of gold price.

A lot of heap leaching mines are profitable at mining gold at 0.03 to
0.05 opt, which means their cost is less than $10 a ton -- including
trucking, mining, leaching and everthing. Ariel Gold is
testing vat leaching with gold at 0.04 opt -- so their
cost is less than $13 per ton.
Granted, IPMC's ore will be more complex, but since they said
last Apr that even with their previous 0.13 opt of gold equivalent
(including pt) they can be profitable at that point - so I do
not believe that they will have a cost of over $40 per ton.
CL will be able to give you better answers.

By giving them a measly 10% profit margin, which no new mine will
operate at, you are able to calculate the price of IPMC worth
only $3 to $5 a share even if they open a 10,000 tons/day plant.
You are also using a PE ratio of 10 while the
whole TSE and SP100 are nearly PE of 20 and every major gold
mine shares are trading over a PE of 40.
Good trick, Zeev.

Peter Munk of Barrick Gold once said that gold mining is the best business because they are able to produce gold at a cash cost of $200 and sold them near $400 at that time.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News