back of the envelope
Since my last post on Bobby's Pond calculations in early April the SP has dropped from 70 to 46c. In the same time interval Cu $3.40 and Zn is $1.56 yesterday compared to $2.54 and $1.22 in April. POG is up since April. The pan plants will probably put through more tonnage than the previous system in SA and at a higher grade. The only major problem is the lack of mining equipment and personnel in Newfoundland (not an insurmountable problem).
Again combining inferred and indicated resource as per NI 43-101 (not unreasonable as the up-coming drilling will convert a lot of the inferred to indicated and add to the indicated resource)...
930,000 tonnes of combined resource
average grade CU 0.82% Zn 4.35%
est. mining cost $0.90 per pound
Cu 18.4 lbs. per tonne x (3.40-0.90) $46 profit per tonne
Zn 95.7 lbs. per tonne x (1.56-0.90) $63 profit per tonne
Profit per tonne today US$109 (April $60)
30,000 tons per quarter.... US$3.27 million per quarter EBITDA
20,000,000 shares ..earnings of CDN74c per share.
So..whats a reasonable share price today?????