RE:RE:RE:RE:RE:RE:RE:Gold bs SPwildhorse65 wrote: I don't know how to calculate the NPV, But I used only the 'measured' resource at a conservative grade. I'm pretty sure that I read in the feasability study that the method of extraction would recover in the 90+ percentile. So maybe you could show me how you arrive at a conclusion that 1.15 is "doing pretty good". 2000 TPD at 7.5g/t is 3750 oz per day at $1900 is 7,125,000 divide by 2 is $3.5 million per day. 7.2 million tons measured divided by 2000 =3600 days or roughly 10 years. Again, that doesnt count anything except 7.2 million tonnes at 7.5 g/t.
Please explain how this share price makes sense? I don't see it. Why is it being held down and who is selling millions of shares unless it's the bought deal shares being dumped back into the market? What's wrong with the numbers? I'm clearly not a mining analyst, I'm asking for clarification.
It seems like you are confusing a few things in your analysis. The recovery rate does not mean that they will recover 90% of the Measured resource. It means that of the ore they mine, 90% of the gold in the ore will actually be extracted for eventual sale. The remaining 10% will end up in the tailings because it is not economically recoverable. The mill rate will be 2500 tons per day, not 2000. The resource grade is 8 g/t at Premier and 7.6 g/t at Red Mountain, but they are not trying to maximize grade in production. They are estimating 5.9 g/t at the mill because some lower grade ore will make it into the mix in order to minimize overall mining costs and maximize profit. There are 31 grams in a troy ounce, so using your mill rate and grade, the daily production would be 484 oz not 3750. The rest of your dollar amounts are based on the incorrect daily production number, which is itself based on incorrect inputs. Please read the feasibility study and trust the numbers there because they are conservative.
No one is holding the share price down. Ascot is trading at 0.5x spot NPV, which is on the lower end of the fair range for its development stage. Watch what happens after they announce the submission of permit amendments and a reasonable construction financing package. It will move from 0.5x to 0.7x. Ignoring drill results and gold price movement, a share price of C$1.50 (+40%) by the end of the year is completely reasonable here.