OTCQX:DMMIF - Post by User
Post by
Rich12on Oct 03, 2008 7:14am
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Post# 15502034
How High Can DMM Shares Go
How High Can DMM Shares GoCan someone in the know calculate how high DMM share price can go based upon Marbob's production estimate of 183,000 oz/year for Zaruma mine? This translates in an annual net profit of $73 million if sold at a gold price of $700 per oz and an operating cost of $300 /oz..
Also, is it reasonable to assume a recovery rate of 92%, operating cost of $300/oz (50% higher than forecasted) and 335 operating days in a year as Marbob did in his calculation?
I thought I read a post several months ago where Washer was quoted saying that the production rate at Zaruma is likely to be around 200,000 oz per year for the first 5 to 6 years of operation. This would be in line with what Marbob has calculated. Whoever posted that, can you confirm.
If the above is true, why would investors be concerned of windfall taxes being implemented for any gold sale over $1000 (say)???? At $1000 gold price, Zaruma gold mine will be making over $125 million net profit per year. That's more than enough. Ecuador deserves its fair share.
This new information has gone me all excited.