RE: RE: This Could be really good!!!Anyone else find that post a bit odd ? What's Deerhorn ??
Anyway, just did a rough # crunch and with 1500T/day at 2g/T with a wild guess of 80% recovery and gold at only $1000 cdn/oz and another wild guess of $25,000/day to mine and process the 1500 T of ore (how much can it cost in China ?) it would take 330 days to generate the outstanding principle of the loan. That's just the one shaft. Then they have another 9 years before they have to make the balloon payment at the end of the term. I would be happy to hear any other sane posters comments or thoughts on this to correct me if I'm wrong and I don't doubt I am off on my figures.
Seems like a safe bet to me and it seems like a safe bet this SP is going higher especially since the float is relatively low. The day the news is official that the loan terms are accepted and an agreement signed is the day Goldrea becomes undervalued and the market adjusts accordingly. That day may not be far off. Hopefully next week !