Originally posted by cfp
Mutley, you and
@spokesy2009 are better than me with the reckonings on the back of an envelope, so please feel free to correct my estimates, these are rough and not designed to encourage anyone to buy or sell, I have worked these out on a current gold price of 1280.00, using a cost to smelter of 700.00, that leaves 580.00 profit, now we own 60% and must also allow say 20% discount for dealings in the DRC, by using my $2.37 calculator, I estimate our profit to be approximately $890,880,000 from the JORCed 3.2 million ounces we currently have, then we have the $70 million of machinery that will be marked down in value, but must be worth say $20 million I have no idea, I think our SP may head north once we get all the information out
I wouldn't jump to quickly in writing down the value of the plant and equipment. It's market value could actually be worth more than cost.
I used to be an accountant for a large manufacturing company. We had German machinery that were decades old and had been fully depreciated for decades. They were in excellent working order and if we were to put a market value to them, the value would be multiples of original cost price.
