anyone worked out costs?, page-18

Hi All,

Lets just look at this simply.

Cost of wet and dry processing for:

18MTPA = 18,000,000 x ($3.35 + $0.45)
18MTPA = 18,000,000 x $3.80
18MTPA = $68,400,000

Tonnes of TREO produced:

= Minned Alluvium x Grade of Alluvium x Recovery Rate
= 18,000,000Tonnes x (0.03/100) x (70/100)
=3,780 Tonnes TREO

Value of TREO produced:

=Tonnes Produced x Value
=3,780Tonnes x $47,460
=$179,398,800

The difference between value of contained TREO and cost:

=$179,398,800 - $68,400,000
= Close enough to $111,000,000

Lets do the same figures on some more optimistic figures.

Cost of wet and dry processing for:

18MTPA = 18,000,000 x ($3.35 + $0.45)
18MTPA = 18,000,000 x $3.80
18MTPA = $68,400,000

Tonnes of TREO produced:

= Minned Alluvium x Grade of Alluvium x Recovery Rate
= 18,000,000Tonnes x (0.05/100) x (70/100)
= 6,300 Tonnes TREO

Value of TREO produced:

=Tonnes Produced x Value
= 6,300 Tonnes x $61,690
=$388,647,000

The difference between value of contained TREO and cost:

=$388,647,000 - $68,400,000
= Close enough to $320,250,000

So a rough profit figure of between ~ $110 million to ~ $320 million.

This for a company with a market cap ~ 4 million.

Now these figures aren't extremely accurate, but they do show that the Charlie Creek resource appears to be very profitable. IMHO that is as much as we can know before the more accurate figures are published in the very near future.

Of course DO YOUR OWN RESEARCH!

Cheers

Stoops