>>That would be a really HUGE operation ,and would require an enormous amount of set up capital,let us be a bit less optimistic...<<
Well, that depends what you call enormous. Actually it will require a relatively small amount of capital, for the amount of potential revenue. The full production tonnage they are using would only require 6 production dredges and 3 multi staged processing plants. The estimated cost of the above should be no more then 20 million U.S. Of course there is some other costs, for storage facilities, vehicals, etc. I think 30 million would be more then enough.
>>and take 1 million ton a year,at a net cash flow of $10 per ton,and let's suppose that a major would own 50% of the operation,this would give the co a net cash flow of 5 million, not bad for a junior with less than 10 million shares outstanding...<<
First, with large production dredges, there is no reason to doubt 8 million tons could be moved in one year. Dredging is a vary low cost method of moving ore, especially with cheap hydro-electric power running the banks of the river, so that combined with the recovery plant that is being considered, makes your cost bases way to high. Production costs are estimated to be somewhere between $4.00 & $5.00 a ton. A full Batemen study, will more closely define all of the above.
The gross values, from various products, are estimated at:
Diamonds - $10.00 to $15.00 ton
Gravels - $15.00 to $17.50 ton
Gold - $ 8.00 to $12.00 ton
Titanium - $ 3.00 ton (This could be much higher depending on the level of refinement.)
On the low side, we have $36.00 U.S. per ton of gross value.
>>One does not see often a junior exploration co move on to the production stage,it really is the exception to the rule,i remain sceptical.<<
You should be skeptical and do your own due diligence, but this is the potential, none the less.
Rich |
