RE: News- Magellan Provides Update on Feasibility HOW I SEE THINGS DEVELOPING:
After discussing things with my co-worker here is how I see things. I'm actually quite pumped up.
I'M ASSUMING GOLD STAYS AT OR ABOVE $1,300 FOR THE NEXT 2 YEARS.
Magellan is operating at a pace that will allow them to complete their Bankable FS by October this year. I highly doubt there will be any negatives in the report, More than likely a better report than the PEA.
I truly hope production will start on their Coringa Property by JULY\AUGUST 2014. My understanding is initial production of 5,000 ounces per month. Assuming they clear $550 per ounce then with Gold at $1,300\ounce we should see clear per month of $2,750,000 dollars. Every $100 increase in the price of Gold over $1,300.00 is an extra $500,000.00 dollars per month.
Now I have no idea how much cash flow will be used to pay back the Funder of the Capex Charges but lets assume it is 50% of cash flow. That will leave us $1,375,000.00 dollars per month.
Lets assume they put the first 4 months cash flow to use drilling the heck out of the remaining Coringa property. I bet there is still another 2,000,000 ounces of Gold to prove up there. Now after burning off that cash flow that will leave them with over $10,000,000.00 cash by the end of the first 12 months operations.
DO YOU KNOW WHAT CAN HAPPEN WITH THAT? They will be able to Farm In on a lot of other juniors that have ZERO CASH.
I think we could see a $3 or $4 dollar share price by the beginning of January 2015. Well that is what my co-worker thinks and I concur.
To buy this stock at under .15cents and hold for less than 2 years and get $3.00 PLUS is a huge return. I've bought more but not as much as others I know.
Hoping the BFS is actually done a lot sooner than October this year. In my opinion this type of property should not need that long to get at the BFS because it is a vein system and the a lot is already known from the PEA.
Average done folks. I have.