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Sandstorm Metals & Energy Ltd STTYF



GREY:STTYF - Post by User

Comment by elmothefearlesson Jan 09, 2013 5:54pm
326 Views
Post# 20817571

RE: RE: RE: Record autocatalyst demand extending p

RE: RE: RE: Record autocatalyst demand extending p

Sorry, those weren't actual grades, I was just explaining that the recoveries were estimated at 95%, 80% and 70%, but wanted to be clear that recoveries refers to the amount of payable metal we get out of a tonne of ore mined, since some people might not be clear what we meant by "recoveries" (thinking back to my hay-day when I first started investing).  

 

I think the grades you have cited are pretty accurate, except the gold grade does seem a little high.

 

If those were the grades, we'd expect our cash flow (assuming no repurchase by CSI) to look something like:

 

@ $550 Palladium: 1,000 tpd x 350 days x 70% recovery x 4g/t / 31 g/oz x $450 net x 35% = $5.0 million

 

@ $700 Palladium: same as above, except $600 net = $ 6.6 million

 

@ $900 Palladium (possibly a reality in a few years!): same as above, except $800 net = $ 8.9 million

 

Once DON is in production I would expect us to earn about $16 - $20 million from DON, TBD and NDX... this stream alone could give rise to almost a 50% increase in cash flow!

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