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American Bonanza Gold Corp ABGFF



GREY:ABGFF - Post by User

Comment by staolinon Feb 07, 2012 12:05pm
239 Views
Post# 19499805

RE: RE: RE: RE: RE: RE: RE: News Update full repor

RE: RE: RE: RE: RE: RE: RE: News Update full repor

If my job were to manufacture a 'pop' by retail buyers on a news release then I might be as dismayed as you at this obvious failure. Your semi coherent ramblings are characteristic of those of different user(s?) on other boards that try to build up anticipation for a pop in SP on mostly insignificant news. Coincidentaly most of the boards where your type pops up are Vancouver companies. Possible relation? Your game create activity on the board is successful and appreciated. If your intent was get make the SP go pop then you've failed today and should be fired.

Anyways, the lack of movement is no surprise. The output for the week of processing reported would equal to only 26,000 oz/yr. But they are also putting through lower grade material (25~% lower than the resource report) and only processing at 80%  capacity. This would mean the current market cap reflects the NPV to a good degree, so any bounce would be pure speculation. The market's taste isn't for that type of excess.. Once we see the numbers from higher grade material processed, with slight improvements to recovery, and an expanded resource, then we'll move to reflect that. 

Now they are working at

.79(processing)*7.4(grade)*.84(recovery %)= 4.91 

if they pull it up to planned #'s

1 (450t/day) * 10.4(resource grade)*.89(recovery%)= 9.25

9.25/4.91 = 1.88

So according to plan they might start pulling out 1.88x more, on average over time, compared to the 1 week sample presented. Recovery % and grade could end up slightly higher or slightly lower. Worst case scenario seems like 40k oz/yr while best case could end up over 50k/yr. In the middle is the number given in the feasibilty study so I see no surprises, contrary to the alarm and cries you like to make.
 

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