RE:2,300,000 tonnes of gold ore x 2.7g/t x94% recoveryHey Farquar, gotta luv you... :-] Butt I think you are being conservative.....
Try being optomistic.. Lets say gold goes to $2500 and PE is 20......
What have we got.... 250K oz X ($2500 - 875 = $1625) = $406,250,000 US or 562,000,000 Can
$562 million/172 million shares = $3.27 X 20 = $65 Can per share... OMG.. It's possible..
Farquar wrote: 188,303 ounces of gold produced from Beta Hunt when both ramps are delivering 2.3 million tonnes of ore in a 12 month span if the grade is 2.7 g,/t and recovery is 94%.. So, since western flanks has 1.2 million ounces and counting of 2.7g/t gold...This is just simple math Add 12,000 ounces of coarse gold over a 12 month span and add that to the 188,303 and you get 200,303.. Add 500,000 tonnes of higginsville central gold (Spargos, Aquarius, Two Boys etc.etc) at 3.28g/t x 94% recovery and you get 49,729 ounces of gold produced in a 12 month span...... 200,303 + 49,729 = 250,032 ounces produced in 1 year... 100,000 tonnes of 3% nickel = 3000 tonnes of nickel x 80% recovery = 2400 tonnes of nickel produced in one year... 2400 x 12,000$ gross profit/tonne = 28,800,000.00 US ...28.8 mil divided by 250,303 ounces = $115 US nickel credit per ounce of gold produced.... AiSC would be around $875 /ounce ...So if gold averages 1600$ over the span of 12 months you get a ebitda of 725$US/ounce x 250,303 = $181, 469, 675.00 US gross profit or almost 250 million$ cdn divived by 172 million shares = 1.45 cdn/share x PE of 10 = 14.50 /share... If the price of gold averages 2000$ over that 12 month span then add another 100,121,200.00 $US profit to the bottom line or 137.5 million $cdn profit for a new profit total of 387.5 million $cdn profit divided by 172 million shares = 2.25 cdn $ profit per share x PE 10 = 22.50 /share...Most likely the PE would be 15 on such a profitable gold stock so 2.25 x 15 PE = 33.79 share price.... So, as you can see, there is a tremendous amount of share price appreciation that is going to take place soon....Even at 1600$ gold, this company is going to make impressive profits...Now you know why the last BD was over-subscribed at 4.80 $/share...