I am waiting for the actual in production announcement and an acquisition but here are some of the key parts of that NR IMO.
Their math is bad. <900,000 tons of new ore containing approximately 12,500 ounces of gold have been placed on the leach pad and gold production is on target for January 2008>
Pages 25-26 of the presentation shows average historical grade:
westerngoldfields.com
.0163 ounces per ton = 14,670 ounces.
<In 2008, we expect to place approximately 220,000 ounces onto the leach pad.>
Read this:
<Initial test work from the Mesquite Vista pit non-oxides conducted by Newmont Metallurgical Services indicated a recovery of gold in concentrate of more than 80 percent, suggesting excellent potential for enhanced gold recovery from a gravity and flotation circuit program. Samples from the
drilling program also will be used for further metallurgical test work to optimize gold recovery going forward.>
secinfo.com
80% of 220,000 = 176,000. so 10-11000 free ounces above projections. 11,000 X 800 POG = $8,800,000.00 in potential additional revenue. Another 5.6 cents per share income.
<Second quarter production will increase to between 40,000-50,000 >
Say 45,000. Then annual production closer to 180,000.
Any way you measure it production may be higher than projected.
<cost of sales per ounce in the first quarter will be significantly higher than the 2008 estimate. In later quarters, the costs will be below the forecast average cost per ounce.>
Start up costs are high but subsequent costs to be lower.
So lower costs and higher production = low projections by the analysts. Safe area. All funded. Proven ounces.
<The drilling will be focused on the follow up of significant mineralization found outside the current reserve area at Brownie Hill.>
Significant eh? I believe it these guys are conservative and don't BS around.
More ounces. Higher production Lower costs. Even a bozo can figure this out but some bozos are not on the bus yet. <g> |
