Hi Dean,
Mr. Informative,...no. Just another hamster. I should point out I have not sold all my shares in this play. I'm holding on to the free ones I have accumulated, hoping Winspear comes up with the where-with-all to take this mine to production, and succeeds in generating a prefeasibility report that increases production to 3000 tpd. Then my valuation numbers could triple.
It is not necessary for the above to be proved,...the market just has to believe that it is possible.
Now to your cost/tonne question. I believe you and Andy are correct. From the MRDI report. Model 2 said total costs for open pit and mining under the lake a total of 3.5 million tonnes of ore would be $CDN305 million . Therefore $CDN305,000,000 total cost/ 3,500,000 tonnes = $CDN87 per tonne.
To update then,
1000tpd x ($300 cdn$/tonne revenue-87cdn$/tonne costs-$30 cdn$/tonne marketing costs) x 350 days x 68% - $20,000,000/year (office overhead, principle payment&interest, misc business and mining costs)= $23,550,000 per year before tax.
With 65 million shares outstanding, when we start production we get earnings per share per year of $.36 before tax.
Market multiple is debatable, but if we assign SUF's at about 5 times we get $1.81.
Still a dollar to drop????? Tune in tomorrow. |
