Woulfe Mining Corp WFEMF

earnings calculations

[Majormac79]

CURRENT APT price $437/MTU

Raw tungsten is a 25% discount to APT =$327.75/MTU

SANGDONG mine TUNGSTEN EARNINGS-

WOULFE has 75% ownership
IMC has 25% ownership

(1,200,000 Tons Annually of resource rock moved) @0.45%WO3/per ton average grade

= 5400 tons WO3
(Note the moly is calculated lower down)

APT stands for (ammonium paratungstate) is priced in $/MTU. MTU is Metric Ton Unit. 1 MTU=10kg. 10 kg equals 22 pounds /short ton unit stu=20 lbs

1000 kilograms in a ton = 5400000 kg / 10kg per MTU = 540000 MTU

Brian predicts high70% recovery and competitors seem to be around the 80% mark
(540000 MTU) X 80% recovery = 432000 MTU

WOULFE sells to APT PLANT and gets 75% of profits
432,000 x 327.75= $141,588,000

$141,588,000 minus production costs of $82,620,000 (170 per MTU) = $58,968,000
WOULFE gets 75% of $58.968 million = $44,226,000 net income
IMC gets 25% of $58.968 million = $14,742,000 net income

taxes, labour, other maintenance expenses
Estimated break even point Brian Wesson mentioned on the conference call is between $130/mtu to $170/mtu
at a high estimate per MTU costs

486000 X $170/mtu = $ 82,620,000 (USED TO SUBTRACT FROM GROSS INCOME FROM THE SANGDONG MINE)

APT price $437/MTU minus $327.75/ mtu costs for sangdong ore = 109.25 GROSS FOR APT JV PLANT

The profit will be 109.25 x 432000 MTU = 47,196,000
operating expence is used in the sangdong mining part (have to adjust)

WOULFE gets 45%= $21,238,200
IMC gets 55%=$25,957,800

Total net income FROM TUNGSTEN SALES approximated for both parties

WOULFE = $65,464,200 (62% of profit )

IMC = $40,699,800 total (38% of profit )

COMBINED = $106,164,000 total profit per annum

:::: EVERY SCOOP OF EARTH PROCESSED HAS MOLY IN IT AS WELL

The Molybdenum mined with the tungsten is grading an average of 0.04% per ton

1.2 MTA times the 0.0004 (moly grade) = 480 tons

converting tons to kilograms(kg) then pounds(lbs)

480tons = 480000 kgs x 2.2 = 1,056,000 Lbs per year

Molybdenum sells for around $15 a pound right now and seems to want to trend to $20/ Lbs

https://www.bloomberg.com/quote/MBMOEUOX:IND/chart/ === MOLY SPOT PRICE

So 1,056,000 lbs of moly times by 15 dollars/lbs = $15,840,000 per year

I ASSUME THIS DOESNT GO TO APT PLANT FOR PROCESSING

WOULFE 75% = $11,880,000 / year EARNINGS from MOLY SALE

IMC 25% = $3,960,000 / year gross earnings from the moly sale

ADD THE MOLYBDENUM SALES PROFIT OF $11,880,000 TO THE TUNGSTEN SALE of $65,464,200 NET INCOME

Woulfe's Grand total =$77,344,200 / year net profit approximately at production rate of 1.2 mta from the SANGDONG MINE

AND MOST IMPORTANTLY WE HAVE MORE MINES, MUGUK GOLD MINE BEING THE NEXT PROJECT TO COME ONLINE AFTER SANGDONG IS RUNNING

[Majormac79]

Sorry alot of numbers there, probably making a lot of peoples head hurt

[cult_of_frank]

Majormac, an excellent breakdown of the process. I tend to price everything conservatively similar to how you have assumed the high end of the $130-170 cost/MTU. I have a few questions on places where I would probably err more conservatively, however, but I'd appreciate your input: In calculating the costs per MTU, where does 486000 come from in your calculations? Woudln't the costs be for

[Majormac79]

 486000 X $170/mtu = $ 82,620,000 (USED TO SUBTRACT FROM GROSS INCOME FROM THE  SANGDONG MINE) that is a mistake it should have been 432,000 times $170/mtu for a production cost of $73,440,000  not $82 million so LESS EXPENSE THEN  i had calculated 10million for for the 75%  // 25% split   (i just woke up so still got a foggy head and eyes)   As

[Shiningstarr]

lol....you weren't too foggy to defend some misleading pinhead.   Thanks for those numbers, as if they could never change.