Can Maritime Produce enough Gold to pay HD Capex The 2022 FS estimated capex was $75 million cad.
About $41 million of that was for upgrades to the Nuggett Pond mill which is no longer required .
That leaves about $35 million cad and I will add $10 million for inflation .
Lets say about $45 million in capex.
I have posted that we are permitted to mine 20,300 ounces of pit 278 from Stoger Tight with an estimated mining time of 6.5 months following a three month prep time .
We have additional production potential from the tailings and aggregate wash plant fines plus the final clean out of fines of the Pine Cove mill.
Then, there are those two vein outcrops of HD plus the opportunity to push back the starter mining bench of the HD mine plus two bulk mining deposits which remain unknown to me but stated as other possible sources of early production.
Given a POG over $2300, all of these options would be very profitable ventures over the next 12 months plus any unstated payments by Firefky for use of Point Rouse Deep Water port .
But, I assume 30,000 ounces would be possible by mid 2025.
This gets us about $95 million CAD ( 30,000 ** $31590 cad ) in revenues which, with a gross margin of 55 % , gets us about $50 million cad in operating cash flows.
So , it's possible that interim cash flows will be able to pay most if not all of the capex needed to get HD into production by Mid 2025.
This would be a major financial boost to our share price , eliminating signifucant potential equity dilution.
AIMHO
and
GLTA..