i hear the sound of money, page-12

here are the figures company showed

Las Lagunas Tailings Project
Key Statistics & Assumptions

Resource 5.137 Mt
Project Life 6.7 years
Annual Mining 800,000 tonnes
Annual Concentrate Feed 225,000 tonnes
Gold Price US $900/ounce
Gold Recovery 70.1%
Average Annual Gold Production 65,000 ounces
Total Gold Production 434,000 ounces
Silver Price US $11.75/ounce
Silver Recovery 62.3%
Average Annual Silver Production 600,000 ounces
Total Silver Production 3,966,000 ounces

Budgeted Operating Costs US$325/oz Au
Government Royalties 3.2%
Government Share of Operating Profit 14.0%
Income Tax Rate 25.0%
EnviroGold Group Project Distribution US$92.6m
Management Fees US$11.2m
Average Annual Profit US$16.2m
Average Annual Cash Flow US$20.7m
NPV of Investment 10% discount rate US$78.8m


So that was using gold margins of $575/oz ($900/oz sale and costs $325/oz) current margins would be $925 using a $1250 gold price and keeping in mind the silver price is alot stronger too

Im guessing the NPV will be $125m+ for this project alone which with 440m shares = 28.5c a share


Funding is the key risk here for me but on these numbers it does seem compelling

I am also not convinced about the cash costs per Oz they seem to low then again they could be after silver credits


Company should really give us an updated presentation showing an updated NPV