Bob - the 60 ton per day extraction figure is one in interpolated from hearing Lionel state that they can pull out 30 tons in a blast and that they can do one blast per shift (and now two if the blasts are far enough apart in the mine) and that the company is running at least two shifts per day (not sure if it might be three).
As for being in the black at the end of 2d Q, my comment there is that if the company can get its milling rate up and pull 3k oz per month out, it would be in the black by 2d q meant that for the 2d Q itself (April - June) the company could achieve black ink. I do not expect for BCMD to be black in Q1 simply becuase the milling capacity is too small and nobody knows when it may increase, but as I said, we all hope that the other Mill will approved and up and running before the start of 2d Q (April 1).
As for 3000 oz/month being putting the company in the black, it would actually take much less given the infusion by the JV. I have heard, could be on this thread but not personally confirmed, that BCMD's monthly costs are roughly 300k. With gold at 300/oz and BCMD's costs at roughly $180/oz (and add another 20 in for buffer) let's just say profit of 100/oz. Without the JV, 3000 oz would give BCMD 300k profit per month, or roughly break even to in the black. With the JV's 700 k contribution, and possible purchase of the additional 19%, then BCMD's breakeven becomes that much lower becuase the JV money goes to pay BCMD's mining expenses. So it is very reasonable to expect that if the millage rate goes up, which is based on approval of the second existing mill, then BCMD stands a terrific chance of being in the black for 2Q and even on a year end basis (although I don't expect a 6 month pro forma would be in the black). |
