RE: from the website:Robotcity,
Yes there is a 7 year mine life if we build a 4500 tonne per day concentrator. As the current deliveries are planned we are at 200,000 tonnes per year, although we did 66,000 tonnes last quarter which even with 6 weeks of downtime, would put us slightly over 200,000 tonnes.
Interestingly if we build a 1000 tonne per day mill instead of a 4500 tonne per day mill we would have kept a much larger portion of the 7 million in revenue. How much more? Would be nice to know. A guess I could venture would be 30% more in profits. So we would make 2.5 million a quarter instead of 1.2 million? If a 1000 tpd mill was in equal ratio to a 4500 tpd mill in capital costs it would require 30 million to get up and running. If we make 1 million a quarter we could in theory make a 20% down payment in 1.5 years, and finance the rest.
At 1000 tonnes per day or 300,000 tonnes per year we could mine the shakespeare reserve (reserve) for 40 years.
In my fanciful little head I see 10 million a year in revenue at todays metal prices for 40 years. Not too shabby.
Personally my target for copper and Nickel are $6 and $15 in two years. Copper is rare and getting harder to find. Nickel has an achilles heel of NPI, but energy programs in China are really reducing the NPI production ability and this industry is energy intensive, dirty and dangerous.
China wants to be energy efficient, clean and safe. That is why they are going to need a lot of copper and nickel for all the electric cars they will build.
UMJ should by rights be trading a lot higher right now. I wonder how long we will consolidate for.