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Bullboard - Stock Discussion Forum TELSON RESOURCES INC SOHFD

GREY:SOHFD - Post Discussion

TELSON RESOURCES INC > Thoughts on future profits
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Post by Spikearoo1 on Feb 10, 2018 12:02pm

Thoughts on future profits

Thought I would share my simple math around possible future profits when TSN get full CM and T to full production...this could be achieved by end of 2018 based on how mgmt has performed so far.
CM is to get up to 2500 TPD and T is projected to get to 550 TPD.
that 3050 TPD translates into 671,000 in annual production assuming 220 working days. 
If u consider that the company sold 3500 in bulk sample tons in 2017 that generated 1.47 mill in revenue.
So here are the numbers...
671,000 / 3500 = 191.714 in saleable materials. Multiple this by $1.4 million = $268.4 million in annual revenue.
lets suppose that their profit margins are 30% even though it could be closer to 36% that translates into $80.52 million profit. At 20% profit that's $53.68 million. 
They have 140 million fully diluted shares. Per shares amounts are $0.57 to $.38 cents per share. 
This thing is currently trading at $0.74 cents per share or a mkt cap of $103 million.
I see lots of mining juniors trading at market caps 4 to 10 x this and have bunk us in earnings, revenue let alone even in actual production. 
Am I crazy or is this thing under valued?
Comment by junior_miner on Feb 10, 2018 5:16pm
Not entirely crazy, but foolish to assume bulk sample grades are representative.
Comment by Spikearoo1 on Feb 10, 2018 7:51pm
What's really interesting is that my numbers were lower than what mgmt has on their web site by 10% to 13%.   Further, mgmt is still working on improving their recovery ratio's as well which they have stated in past news releases.  As that improves makes my numbers look low. Lastly, i rounded down...TSN received 1.47 million i used 1.40 million.  In their presentations on T ...more  
Comment by shakeypremis on Feb 12, 2018 3:34am
Reposting my own calcuations based on historical recoveries and the stated grades in the resource estimate (measured and indicated): Gold: $1300 Silver: $17 Copper: $3.20 Lead: $1.15 Zinc: $1.5 I have also included an 80% discount to the market value of the metals to hopefully account for AISC. Allowing for a huge discount to the market price should mean the figure I come up with should ...more  
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