js,
The mill is supposed to process about 225,000 tons/yr.. Running at 700tpd it will operate 24hrs. for approximately 330 days/yr. Assuming that the head grades, recoveries and costs are similar to the past, the company should achieve a cash flow of around $0.16/share. Not bad for a 30 cent stock. If gold prices increase, the gains will flow directly to the bottom line, at the rate of $0.015 for every $10 increase in the realized price. That is the good news.
The company is also in the process of installing a circuit to process sulphide ores, which kind of makes you wonder about the future of the Whitehorse project. Hopefully, they will discover more easily accessed free-milling ores so that they can keep costs at the present level.
The emphasis today is on survival not grand plans and all the Slack (pun intended) has been cut out of the operations. Mergers, capital projects etc. aren't on the present agenda.
Sincerely,
Al Cern |
