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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: chip who wrote (26188)	12/31/2003 2:29:16 PM
From: Claude Cormier	Respond to of 39344

I think it is specific to Appolo and is probably link to some kind of one-time pre-stipping waste opêration. But you wuld have to make sure by calling them.

To: chip who wrote (26188)	12/31/2003 2:38:32 PM
From: E. Charters	Respond to of 39344

Exploration varies but may be ten dollars per ounce. Capex for plant and equipment can be 10 dollars an ounce or thereabouts. Waste stripping at 3 to one at 0.05 ounces per ton could be 65 dollars per ounce. Work it out. Ore os 20 tons to the ounce. waste is an additional 60. If it costs 1.50 a ton to move waste, that is 75 bucks. The question is, what does it cost? So at 280 cash costs, their true cost is 375 an ounce, plus any debt service costs, royalties, and closure costs. Did they include them? At 500,000 ounces, all that could come to 5 million. Ten bucks and ounce. True cost is probably 385. A target for a profitable operation is about 160 cash costs, or huge huge size. I would not be crazy about a small operation with only a 27 dollar per ounce margin. EC<:-}