RE: ProductionOK I'll bite... here are my numbers based on the press release of Oct 7/2007 which states:
Increased overall resource at Perseverance;
New Indicated Resource: 447,757 tonnes at 6.40 g/t for 92,066 contained ounces Au
New Inferred Resource: 406,458 tonnes at 2.68 g/t for 35,075 contained ounces Au
So let's call it about 850k tons averaging 4.5 grams/ton. The mill is rated at 1.2 million tons/yr capacity. Let's say it takes a full year to process the 850k tons and retrieves about 120,000 ozs. Let's use 700.00$/oz selling price and 350.00/oz. production cost. The JV operation will generate 42 Million dollars of which 50% or 21M goes to to CBR.
After the high grade Perserverance ore is depleted, there is at least
another 400,000 ozs in lower grades to be had. The mill should keep working for at least 5 additional years should the price of gold hold (I am regarding this as a given).
21 Million annual cash flow should result in a market cap. of at least
3X cash flow or 63M. Current market cap is 36M.
So based on these, I think conservative, numbers there is easily 50% upside from todays share price valuing Nunavit and Argentina at nothing and making no allowance for further hits in Australia.
I'm sure this evaluation is riddled with bad assumptions and downright errors..please feel free to comment.