RE:RE:RE:2019 Denver Gold Forum Presentationganndolph - I see the cost per oz going down with higher grades. As pointed out by you on a few occasions, the Bjorkdal mill operates at a fix cost independent of the grade. It all makes sense.
My estimate the 2020 profit:
3.37 g/t
26,000 ounces / quarter
gold recovery to 91 percent.
weighted average mining cost to $261 USD/oz.
Au spot price $1500 USD / oz
2020 Bjorkdal profit = 26000 oz x 4 quarters x ($1500 USD - $261 USD) = $128,856,000 USD
Of course this does not include the ASIC for entire operation and mgmt of the mine. So, if I double the cost per ounce to $522 USD /oz to create a worst case on the overhead costs, the profit comes out to $101,712,000 USD. Am I on the right track?
One can see how MND can address their appprox. $64M debt. Duffy is in a very comfortable position having announced this 2020 objective to address the debt. MND should be in a position to statisfy the $15M escrow terms in the next 9 months, or sooner.
If Au spot price goes up another 20% starting in 2020, this will put more money in the treasury. This could allow for mill expansions (eg. ore sorters/screeners) and drillling on the east wing of the mining permit.