RE:MillKruithof wrote: So the mill is supposed to process 1.1 million ounces over the next eight years so we're looking at over 2 billion dollars @$2000 a ounce
If you look at AOTs presentation they are predicting aprox. 120k ounces of gold production this year and aprox. 180k per year after that for the next 5 years before tapering down after that. With the amount of gold they have and will find it will not be tapering down for 25 years i would expect and maybe even expand production in the next years.
At 120 k production this year with aprox. 9% . going to the gold stream that would leave AOT with aprox. 109k of gold. If they can produce with an AISC of aprox. $1200 US that would leave a profit of aprox. $900 US per ounce or aprox. $98 million US or aprox $ 130 million Cdn. There is also the 3% NSR which would cost aprox. $8 million US leaving aprox. $90 million US or aprox. $130 million Cdn. in profit this year.
Next year at 180k production and an AISC of aprox. $1200 assuming current gold prices that would leave AOT with aprox. 162k of gold after the gold stream for an aprox. $145 million US in profit minus the 3%NSR leaving AOT aprox. $134 million US or aprox. $180 million Cdn. in Profit.
At 8 times cashflow that would equal an AOT market cap. of aprox. 1.44 billion Cdn. or an aprox. $2.60 AOT shareprice. That should be achieved in the next year or so if things go as planned.
The major construction and heavy spending are coming to an end here. In the next few months AOT will start bringing in aprox. $11 million Cdn. in profits. They are basically debt free except for buying back the gold stream if they want. That $11 million per month will increase to aprox $15 million Cdn. per month next year only 9 months away. With all that cashflow they can do major exploration of the property and development and expansion of the mine.
Its taken awhile to get here as is usually does with all the ups and downs but the future here is looking really good for those with some patience.
Good luck to all.