Yesterday's Presentation
It was a small intimate gathering.Pete,Brian and Mohan were in the house.It was short and sweet.I had nice chat with Peter once he finished the slideshow.
In regards to the ETR.It seems like we are realy close.The elections are in less than two weeks and no one wants to say too much.Everyone is optimistic and I believe there is a good chance we will have joint ministerial approval of the ETR by years end.
This project is worth MULTIPLES of what it was when FRP picked it up for a song.
The NPV of the project soars from 85 million at 400 gold to 236 million at 600 gold
The IRR increases from 12% at 300 gold to 53% at 600 gold
Now.Lets talk about how robust this project has become.It turns out my previous calculations were even more conservative than I like to keep them.
THE FIRST YEAR OF PRODUCTION: 185,000 OUNCES
REVENUE AT TODAYS GOLD PRICE: 105,000,000!
MINUS OPERATING COST OF 135 BUCKS PER OUNCE:25 MILLION
THAT LEAVES US WITH: 80 MILLION PROFIT (MINUS VARIOUS OTHER EXPENSES AS UREKA MENTIONED) That would equate to EPS of about .40 cents with 170 million shares out.
I must mention that Peter said that we should be able to finance the project 100% DEBT!!!! NO FURTHER DILUTION.Just the 170M shares and the 25 million cash!
Now.That blew my socks off,It realy did.This project will pay for itself in less than 2 years.the 2nd year of production is actualy more robust, and then we drop off from there,but,you get the picture.
MACUSANI URANIUM PROJECT
The drill should be spinning in November.20k M over 8 targets.So I assume just over 2k M each zone.Dont quote me on that.The program objective is to outline a resource of 50 MILLION POUNDS u308!!! When u put the results of the previous programs together and extrapolate the results,you can begin to see how we arrive at that number.To give an idea of how significant that number is : Worldwide production is 2004 was 104 million pounds approx.The drill program will cost 2.5 million and that will complete the earn in.50% to FRP.
Dixie creek assays should be released within 2 weeks.The labs are backed up.
We have reason to be excited.......
Goldbug317