GREY:PMVGF - Post by User
Comment by
OracleOfOttawaon May 25, 2011 10:17am
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Post# 18622437
RE: RE: Gold HIT
RE: RE: Gold HITAssuming that a cubic meter of "dirt" weighs a ton
Pretend you are about to dig a parking garage, 5 stories, so let's make it a big one :)
100 m x 100 m square, 5 stories (4 m high each)
that's around 40,000 cubic metres, so 40,000 tons
divide that by about 8 (say 3.5 g/ton average) and you get 5000 oz of gold.
Say it costs you $500 to get these 8 cubic meters dug up and processed, and you sell it at $1500/oz
that's $5 million dollars (or about 1/20 of the market cap of this stock)
So we dig up 20 underground parking garages, and that is the market cap of the company.
Not sure why the price of the stock is not going up, but they say they have money for 2 more years, and they say they will be in development BEFORE 2013 (less than 2 years).
it's basically open pit - few front end loaders and a bunch of dump trucks - looks like we got us a convoy....
Anyways, I'm hanging in.