how much is an ounce worth in El Oro?Correct me if I am wrong please:
Xali just signed the new tailings contract.
110000 ounces gold 70% recovery, means about 75000 ounces for sale
3 Mio ounces silver 80% recovery, means 2.4 Million pounds or ad current market prices about 25000 gold ounce eq
If I understand NSR correctly it is gross proceeds minus transport costs and smelter costs so lets say 500 USD per ounce leaving 1800 USD per ounce
So the base to calculate Xalis NSR would be 1800x100000 or 180Mio of which 4% are 7.2 Million USD
So this would mean an ounce gold in the ground in El Oro would be worth about 72 USD
Lets see how the backfill contract will take this into acount?
Also note that 7.2 Miillion USD are signifcantly more than our overall market capitialization.
I think it is time for the Xali management to ensure that the contracts they sign are functional and executable - the tailings project is lingering around for 10 years now and we have seen the idea of doing it ourselfs, or giving to third parties that can not live up to their committments - mangagment is responsible for selcting the right partners. This time I think it could work. GLTA