Baru Gold Corp V.BARU

Baru.v - insane revenue over 30yrs mine life

[brodeur]

<p> Asked IR for a corporate update.<br /> - for upping production of gold, they changing from the previous Merrill Crowe plant to&nbsp;<span style="font-family: &quot;.SFUI-Regular&quot;;">Eletfrowinning plant which costs around $600k and takes 6 months to be built locally<br /> - once they get the permit it will take them 60 days to start producing gold<br /> - each plant does 3k oz per month gold, can also produce silver<br /> - the revised current resource is 1m oz gold and 15m oz silver and copper<br /> - they think there is actually 5m oz gold in the 42 ha given 5% drilled<br /> -&nbsp;</span></p> <p> &nbsp;</p>

- cost of gold is $700 per oz
 

if using a 30yr mine life:
- 5m oz / 30yrs = 166,666 oz per year
- 166,666 divide by 36k oz per plant = 4.6 or 5 plants required
- 5 plants x 600k each = $3m capital cost 
- 166,666 oz x (2600-700 cost per oz) = $316m gross profit per year

that seems a bit insane :-)

[momo14]

pretty undervalued