GREY:VMSTF - Post by User
Comment by
axegirl1on Jun 01, 2012 1:54pm
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Post# 19971779
100 Million for a junior/
100 Million for a junior/ And don't forget Reed Mine is still open at depth.
And don't forget Reed Mine is still open at depth.
“What percentage of the Reed development will VMS be on the hook for?”
As I replied to this today “Our 30% share of the capital costs (30% of approximately $75M) is approximately $22.5M. That will come out of early revenue from the mine. Present projections suggest that payback of the $75M will be complete within the first year of production. After that, we expect cash flow to VMS for the remainder on the mine life (5 to 6 years). Our calculations, at these copper prices, suggest approximately $100M to VMS over the mine life.” We are carried to production.
This slide from our most recent Corporate Presentation describes our internal calculations using the January, 2012 PEA numbers and provides perspective on Reed’s value to VMS shareholders, based on copper prices as shown.
“What percentage of the Reed development will VMS be on the hook for?”
As I replied to this today “Our 30% share of the capital costs (30% of approximately $75M) is approximately $22.5M. That will come out of early revenue from the mine. Present projections suggest that payback of the $75M will be complete within the first year of production. After that, we expect cash flow to VMS for the remainder on the mine life (5 to 6 years). Our calculations, at these copper prices, suggest approximately $100M to VMS over the mine life.” We are carried to production.
This slide from our most recent Corporate Presentation describes our internal calculations using the January, 2012 PEA numbers and provides perspective on Reed’s value to VMS shareholders, based on copper prices as shown.