OTCQX:BGMZF - Post by User
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BywrongKon Sep 11, 2018 6:44pm
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Post# 28600885
so let's try and figure out cash costs
so let's try and figure out cash costsMilled recovery is 91.6%, average grade of 7.05 g/t compared to the planned 6.5 g/t and dilution is on track with the predicted 12%. Significant reductions in operating cost has been made over the past few months, effectively reducing the initial $300/tonne CAD operating cost to $190/tonne CAD in the recent month So to produce an Oz of gold....31/(7.05*.916) = 4.8 tons of rock per Oz * $300 = $1440 cash costs per oz. Unsure where the 12% dilution fits in. So that's about a loss of $250 per Oz...if they produced 12,000 oz in 5 months....is 2400 oz * $250...yup $600,000 loss/month. OUCH And some of the PumpTards here think this is "good News"...guess it's better than losing $1,000,000 per month. Freak...this isn't a new mill they are starting up...it's been in production before so shouldn't be 100%...'HOW DO WE RUN THIS" time.