RE:RE:Not BadHIGHBALLER wrote:
so show of hands who has worked at a mining operation .... I agree with not that bad. With the ore they have stockpiled and the gold price on the rise I did the math 105000 tons @ 4 grams / ton is 420000 grams / 31 = 13584 ounces x 80% recovery = 10838 ounces x 1250 $/Oz = 13 000 000 $ sitting there ( and I have under estimated all figures) stock is a steal .... at 5.5cents.
I don't think your numbers are underestimated and the SP is a steal..
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as per MD&A reported to SIDA for Q12016, the 4gr/ton is fairly high. For Mar 2016, AUE reported the feed grade is 3.1 and recovery rate is 89%. Using your approach, the total value will be $11.7 mil. However if you take the All-in-sustaining-cash cost of $1,153/oz, AUE earns a profit of $906,465.
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Note that the number is before the suspension. Hence, after that incidence, the cost must be higher. Don't you think?
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just my 2 cents