Mountain Lake Resources Inc V.MOA

Quick Math

[Cousin_Gert]

Lets throw around a few numbers...say 1MM OZ at $1200/OZ ='s $1.2Billion

Say capital plant costs  = $100MM.
Say operating costs      =  $800MM($800/OZ seems very high)

This leaves $300MM Profit
Say this is over 10 years
This gives  $30MM/yr Profit

%50 for MOA gives $15MM/year....so say roughly $.40 a share.

With share pricing ratios for gold producers  running as high as 20 times(and more), I'll pick a low of 10 times earnings

So MOA values at $4.00/share...

Double the OZ to 2MM will double the price = $8.00/share

Half the cost/OZ to $400(very reasonable for Open pit) and double up again to $16.00/share

Double the gold price($2,400/OZ; some say is possible) and you get $32.00/share

And so it's easy to see lots of blue sky coming for MOA with so many upside possibilities...

My thoughts, C. Gert

[JR5]

Gert, I agree that the operational costs may be a little high and probably are lower by $300 million. Just add another $300 million to the profit line. When they raised all that money recently it gives me the impression they are going after the creation of a resource with at least 2 million ounces of gold. Next week the warm sunny weather arrives and they should be able to bring in any heavy

[Cousin_Gert]

JR, Of cource I am not predicting $32 share(although stranger things have happened!). Just was adding upside possibilities together to show the current blue sky potential(although did not put out what could happen if say 4 or 6MM Oz eventually were proven like on similar big Abitibi geology in Quebec). Currently would only need to hit on any one of these or a small upside fraction on a couple

[brianjames]

Well.....I have to admit I took your advice in advance Gert.  Topped up my TFSA account a couple weeks back and am loaded and ready for the Bull run on MOA.  Those numbers your throwing out there are somewhat staggering....I just hope we reach the first inkling of what you suggest.BJ