re: Ann: MKO: Anthill Mining and Treatment JV... "ore with low concentration should be getting them 2 oz of gold"
Sorry I got my grams and ounces mixed up, should have been 2 grams of gold a tone.
60,000 tone would give us 120,000 grams or roughly 4,000 ounces a months.
If you could make $800 profit per ounce that would result in profit over $3 million a month.
These figures are using the approximate estimated production costs $800 a ton based on life of mine (from the announcement re next 3 month shipments), gold grade average of 2 grams a tone, 60,000 tones ore processed a month and price of gold U$1600 and A$ to U$ at parity, as is the case ATM.
Once the plant is operational, getting this kind of profit consistently should be relatively easy to achieve, by judiciously mixing you dirt for processing using richer or poorer grades depending on POG at the time.
The mine would be uneconomical if the POG fell below $800 cost of production. While everything is possible, Goodman Sachs and many other experts believe the likely near future direction of POG is up, not down.
On these numbers it is hard to understand the recent steep drop in SP and lack of interest in this stock.
The job for the management is to get this processing plant build come hell or high water. Having some positive numbers in the December results would not hurt either.
KMC Price at posting:
2.0¢ Sentiment: Hold Disclosure: Held
