Return on investmentHi Just beer talk again.
I have been looking at different buying suggestions from Casey Research,Jim Rickards and a few others and what i was interested in was:
What funding is needed and what is the projected return and time.
The IRR from the co i have looked at was anywhere from 20-30% after the opening of the mine.
That means that if a co needs $100m to get a mine into production and it takes 2 years before production and the IRR is 20% it would take 7 years to repay back the funding.
And with risk of not going into production is a gamblers bet.
Abcourt from the co info furnished needs +- $25m and not all at the beginning.
The cost of borrowing should be low due to no risk.
The risk is limited due to the mill already functionnal,
The mine already partially open.
The number of oz produced when fully operational and the timing and the cost of producing
will vary but not much in a year.
Some past IRR quoted less than a year to pay back funding, but i would guest two years would be reasonable .
And after all would go to the bottom line.
I know my numbers change at every post i make.
Blame that on the beer.
Fernand