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Gold/Mining/Energy : Royal Oak-RYO -- Ignore unavailable to you. Want to Upgrade?

To: Michael Bidder who wrote (952)4/25/1998 11:16:00 PM
From: mineman  Respond to of 1706
 
Net Smelter value = $7.80/ton (at .018 oz/t gold, and .22% Cu, at $310/oz gold and $.85 copper)

Costs according to Royal Oak own figures = $6.00/ton (before taxes and capital payback).

So profit at 50,000 tons/day = $80,000/day = $29 million/year (before taxes and capital payback).

As the payback of interest and principle will be over $30 million/year, Kemess will lose at least $1 million/year at $310/oz gold and $.85/pound copper.

This same equation would need to be redone for gold at $325/oz. When it reaches that level I will post the equation.



To: Michael Bidder who wrote (952)4/25/1998 11:52:00 PM
From: Al Cern  Read Replies (2) | Respond to of 1706
 
In my previous response point 1) the number of tons was meant to be 260,000 not 260,000,000. I have read elsewhere that the number is 170,000, and someone else said between 100,000 and 500,000 tons, nobody really knows. I've got to be more careful, otherwise the Yahoo's will run me off their thread.

Sincerely,

Al cern


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