Silvercrest deal Just triing to get this straight in my head.
Paid 12mil and 3mil shares @ .40=1.2mil
$13.2 mil for access to 20% of Silvercrest's gold production @ $350/oz
slv predicts 35000 oz gold per year X 20% = 7000 oz per yr
slv predicts production 1st quarter 2010
Lets say realize gold price over the life of the deal is $800 (just a wild guess)
2010 3500 X 450 = 1.575mil
2011 7000 X 450 = 3.15 mil
2012 7000 X 450 = 3.15 mil
2013 7000 X 450 = 3.15 mil
2014 7000 X 450 = 3.15 mil
= 14.175 mil
So if there is no increase in production or change in price of gold or or or ?
Is a 4 yr pay back sound about right or as my wife likes to say am I full of it.
slv predicts a 10 yr mined life at current reserve levels so there is still lots of time to make hay down the road.
slv predicts 500,000 oz silver/yr but I don't think thats part of the deal.
Haven't found any info on a Luna timeline or production estimates.