RE: RE: RE: PIANO - Out Of Tune Have to jump in on this one. Piano there is something seriously wrong with you. No where does Truegold say, " Mining will pay capex". However that is exactly what happens. If the mining process can not cover the capex and all costs and return a decent IRR then you do not bother with PFS or FS.
The PEA says:
- PEA indicating an internal rate of return (IRR) of 33 per cent for the project and a net present value (NPV) of $109.9-million at a 5-per-cent discount rate and assuming a gold price of $1,350 per ounce (all figures presented on an aftertax basis);
- Low initial capital cost of $64.5-million with a life-of-mine (LOM) total including sustaining capital of $115-million and projected operating costs of $106 per tonne milled;
- Average gold production of 50,885 ounces per year at steady state, with LOM average cash cost of $531 per ounce and a full cost including capital of $819 per ounce over LOM;
- Project payback of 2.9 years and LOM of 8.5 years from 750-tonne-per-day underground gold mine with a process recovery of 93.5 per cent;
- Project economics using a current gold price of $1,720 per ounce indicating a project IRR of 52 per cent and an NPV of $206.1-million at a 5-per-cent discount rate (all figures presented on an aftertax basis);
- Study based on the May, 2012, NI 43-101-compliant updated mineral resource estimate compiled using a one-gram-per-tonne (g/t) gold cut-off which outlined measured and indicated resources containing 561,000 ounces gold (3.2 million tonnes at 5.5 g/t gold) and inferred resources 534,000 ounces gold (5.5 million tonnes at three g/t gold);
- PEA including current measured and indicated resources and limited inferred resources which will be upgraded in early 2013 through a planned drilling program in conjunction with a planned feasibility study; typical mining dilution and recovery of 5 per cent and 94 per cent, respectively, estimated and a four g/t cut-off used to produce a mine plan;
- Given the robust economics of the PEA, company to commence a feasibility study and drill program in order to make a construction decision during fourth quarter 2013.
Project payback of 2.9 years usually means the time needed to recover the Capex costs. That is what anyone reading Truegolds post would understand. But not you.....argue for the sake of arguing and try and muddy the waters to get people to agree with you. FOOL!
Right now MNM has all the cash they need to infill drill the Coringa property. No more dilution to move to indicated. But hey, how the heck would you know that. They may raise another 10 million but in the scheme of things that is not MAJOR DILUTION.
Piano you should do some reading. There are many ways to raise\get money without diluting the stock. Why don't you read and see what MNM just did a few months back to raise $7.5 million. No dilution of the stock. They can sell a piece of the property, outright borrow $100 million dollars as debt or have a major finance the project for a set rate of return. Clearing $35,000,000 million a year (minimum) doesn't mean they have to pay back or use all cash flow back to whoever they got the money from. Keeping out $3 or $4 million bucks and using that to further drilling is most likely.
Coringa has a lot more gold on it. Their other properties as well will make this a $3.50 stock in less than 4 years. By the way you attempt to punch holes at MNM for being down 90% is futile. Sure the stock hit $1.90 but it was very temporary. Anyway using an average price of say $1.00 means an average investor will 3.5 to 4 times there money in a total of 5 years. An average investor in your DOG Capstone using an average price of $2.75\share will never see $9.62\share. So head back to your DOG and save youeself from looking like a moron.
Just to inform you a lot of companies go straight to FS and skip PFS. Why? They already know what they have and why waste the money on PFS.
You're such an amateur.