LeMarcus wrote: Of course, acheiving a certain level of production goes along with securing sales/orders.
The target production level won't be obtained overnight (at least, we shouldn't expect it).
Also, depending on various aspects, different treshold of production requires different permitting, to the company would evolve over different permitting stage, but no reason know not to obtain at least a comparable level of operation as Sitec.
Note that Sitec was know to Blast up to 400kt/a at some point and with 40% rejects. Same rejects they are now(or planning) reprocessing with more sophisticated equipments.
From my point of view 40$ CAD per ton profit seems like a reasonnable average for a mix of products we are likely to produce and supply at maturity. As per volume of production, can't tell if there is some kind of "physical" limit but for sure, we can reassonably assume we can do as much as Sitecs in term of tonnage.
From my point of view, bringing free cash flow into a business, is a very good thing. If one considers that the cash flow can be invested into new projects, doesn't take much money to finance early exploration, and this can drive huge returns. Not too bulish on commodity metals recovery in the short term, but there are some bullish people on the market place. Rogue has a real good Nickel property, and experienced management in the Nickel Business. If prices of nickel recover to an economical level, the property there is in good standing, and not to far away from a production decision. That is of course, just to give one exemple. It could be any mineral, when you have cash flow, you don't have to worry as much about financing for exploration. Easier to raise new money if needed, at a lower cost for SHolders. In any case, if management can secure some decent volume of orders to start the show, that will be a very interesting show to watch on near and long term!
Also, noting that Anzaplan tested one sample and reduce Iron levels with leaching, i would have like to see a more detailed report on chemical anaylsis and characterisaton... but i understand we have Private company as competitors(or future competitors), probably it's a good thing not to give them to many "strategic" details.
pickeral wrote: I have been thinking of this project from the low end of the scale, and keep my potential upside from being too over optimistic, so I would like to know what your best guess for the very LOWEST total tonnage that we may have?
From what I have read next door, they are doing about 250,000 tons a year, and they have been going for over 40 years.
My LOWEST net profit guess is $40 per ton (taking in end product higher price usage and lower usage) on 250,000 tons would give us $10 million and PE of only 5 would give us a very very low guess of a market cap of $ 50 million. Now I know that is very low, but it does give me some comfort on the lowest price that we should be looking at. At the lowest price we are still well below what we should be trading at.
PS to the bashers, please keep your post to some kind of logic that has even a very thin shade of research, as all your other posts are totally illogical and lacking in any form of research.
JIMHO