RE: SPM Looking Better This MonthRS2, I posted four senarios.
1. Current
2. Estimate for when this financial crisis is over.
3. Just for fun....If metal prices where to return to past highs
4. Just for fun... if metal prices return to past highs and they purchase, install and commision an additional ball mill. Which, according to hearsay, there is space in the mill ready for the install.
More heresay.... this ballmill will cost $0.5M.
The senarios show 10,000 tons per month for current then, if memory serves, 30,000 tons per month when metal prices improve and they increase production, and 50,000 tons per month with an additional ball mill.
Please recall the latest press release where they say something about running low tonnage to preserve the metals then as metal prices rise by 10% they will increase the throughput by 10%.
In hindsight a senario with reasonable metal prices and an new ball mill might have been more useful than senarios 3 and 4.
The following was cut and pasted from SPM's web site
"In eight months, the company constructed a 1000 tpd, but scaleable up to 2000 tpd, mill facility that was completed in March 2008 with commercial production expected in third quarter of 2008."
I assume "scaleable" means by purchasing and installing the ball mill that I refer to.
Heresay has it that they run 30 days a month.
So at full capacity the throughput could only be 30k t/m and that is probably unreasonable.
So projection 2 (Crisis over) is a max case throughput senario.
Does anyone out there have any reason to believe that the grades in the projections can be maintained or improved? (I am barely a novice at reading the technical core sample data.)
Regards,
__D__