Sandong Profit ProjectionsHi this may help a bit, I had a hard time understanding the numbers from the 43-101 and reconciling them to the presentations so I tried my best and came up with the following for Sandong:
Presentation charts look like this for the initial year, base case and after ramp up:
180,000 MTU Wo3 – Year 1
300,000 MTU Wo3 – Base Case, starting in year 2
400,000 MTU Wo3 – Ramp Up
From the 43-101 it showed
(1,866 tonnes) 186,582 MTU Wo3 (from 451,000 tonnes of ore) – Year 1
(3,106 tonnes) 310,639 MTU Wo3 (from 644,000 tonnes of ore) – Base Case, starting in year 2
(4,927 tonnes) 492,660 MTU Wo3 (from 1,288,000 tonnes of ore) – Ramp Up
Now if I apply a $288.6 received per MTU Wo3 ($370/MTU*0.78) I get revenue of:
$53.847 million – Year 1 (Profit of $33.323 million assuming a cost of $110/MTU from presentation)
$89.263 million – Base Case (Profit of $55.480 million assuming a cost of $110/MTU from presentation)
$142.181 – Ramp Up (Profit of $87.989 million assuming a cost of $110/MTU from presentation)
It took me awhile to figure out the different units, MTU’s vs. Tonnes vs. Ore Tonnes and Tungsten Price / MTU Wo3 vs the price received for the product we are producing which is about 0.78 of the quoted price.
I think I’ve got it correct now, but have a look and if you see errors let me know.
This doesn’t include the higher grade that Lewis was mentioning so I believe so more upside is possible and even with the $235 ($183 received) floor price, Almonty is making solid profits of $14 million - $36 million each year, so a nice insurance policy.
Spread out $88 million annual profit to a company with 213 million shares outstanding and you are doing okay as an investor or in Almonty’s case, I like to think of it as a part business owner.