RE:RE:RE:NOT TODAY JACK !!RatPatrol wrote: Thanks for your reply Angelique1.
I've followed Lundins around for decades and admire their work and respect the family. . So have I. That is why I am investing in Bluestone
1) Before we allow our eyes to pop out at the 28% IRR, we should note that the 5% discount rate is only 2 points north of long Treasuries. IMHO that rate is too low to reflect the MINING RISKS in a country struggling to emerge.
Secondly, those treasury rates (which represent the risk free rate of return) may move up from here
You can do whatever sensitivity analysis you would like and use 10% and you still get jaw dropping financial numbers. You can use $1800 gold and $25 silver versus the $1550 and $20 silver price in the PEA. You can expand the mine life from 11 to 15 years. Therre are a variey of factors that can be adjusted in any cash flow model. I still see eye popping numbers from any financial metric.
2) You likely have a point about inferred vs measured - whatever.
A latin government may consider all this to be splitting hairs.
Reviewing one or two fiascos may help BSR management with their approaches.
A PEA may count for little. Yes it is the feasibility study that matters
And seguaying into......
3) Talk around the campfire this week is that the recent Newmont purchase of GT Gold up in BC's Golden triangle, covering a deposit many, many times larger than Bluestone's, may unravel.
Around the WORLD, Greta has stirred up the locals, is my small point Angelique1.
GT Gold has nothing to do with Greta. The Tahltan nation and Chad Day are one of the most powerful organizations in BC with signigical financial, legal, and political clout. Their terittory covers 11% of BC and they do support mining but it will be done on their terms. Just ask Royal Dutch Shell. and their coalbed methane project back in 2012. For a successful collaboration just look at Skeena Resources and the Tahltan nation this year.
So, Angelique1, I'll wrap up paraphrasing Lukas Lundin, who tries to extract the highest value while investing as little as possible.
With that, and using both PEA's and a MUCH higher discount rate, create a mine plan and schedule around a thorough risk analysis. Not sure why they would be using both PEAs. They will develop the feasibility study based on the latest PEA showing an open pit operation
Bluestone has a lot to work with!
BEST OF SUCCESS!
JMHO