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Signal Gold Inc T.SGNL

Alternate Symbol(s):  SGNLF

Signal Gold Inc. is a Canada-based gold development company. The Company is engaged in advancing the wholly owned Goldboro Project in the Canadian mining jurisdiction of Nova Scotia. The Goldboro Project is an advanced exploration and gold development project located approximately 175 kilometers (km) northeast of the city of Halifax, 60 km southeast of the town of Antigonish, and 1.6 km north of the village of Goldboro, on the eastern shore of Isaac’s Harbour, in Guysborough County, Nova Scotia, Canada. The Company has consolidated approximately 28,525 hectares (285 km2) of prospective exploration land in the Goldboro Gold District.


TSX:SGNL - Post by User

Bullboard Posts
Post by LastMohicanon Apr 16, 2011 8:41pm
215 Views
Post# 18442167

Results

ResultsSome people seem to be every encouraged by these results.

Personally they seem to show just how bad things are and how big a hole ANX are in.

They produced 19.89 ounces of gold a day, with the ore used they should have got something like 44.5 ounces a day less expected losses, so the true figure should have been around 40 ounces a day.

They lost $800,000 on operations that's nearly $9K a day in losses even with a sky high gold price. Add in admin costs and the loss is $19k a day.

Now lets assume ( and that is a big assumption for ANX) that they were getting 90% recovery. that means an additional 20 ounces of gold a day. That would mean sales of $4.4m for the next quater, less cost of sales and admin costs and you are looking at a gross profit of
.6M for the quarter.

Take in the $6.8M working capital shortage and it will take 10 quarters, for the company to break even regarding working capital. However inside the 21/2 years debentures etc have to be re-paid and it allows nothing for exploration drilling costs etc etc.

LOTM
Bullboard Posts