Royalties are 2.5% as per http://www.dmp.wa.gov.au/4407.aspx
For total costs i used cash costs plus royalties plus $3.6M per year obviously this excludes working capital, but's it's been a rough week at work so go easy on me.
MY NUMBERS ARE NOT DEFINITIVE AS I DONT KNOW THE EXACT PRODUCTION PROFILE, BUT THEY ARE INDICATIVE.
The plant is large for (i used) up to 120kozpa, but that is because of the low grade, but there is no issue with this, grades are declining, plants are getting bigger, that's the way of the world, get used to it.
I have quite a large position, i take a great interest in this stock, i work in the industry, nothing that was in this release was a surprise to me, i expect the project to grow and grow. I'm very happy with the way PXG works, communicates to the market and goes about it's business.
$131M is nothing for a gold mine, as we get closer to production, our market cap will approach then exceed this amount. Worst case scenario is that the crusher and heap leach gets built first and they self fund the entire operation. PXG's main attraction is that it's almost GFC proof given current gold prices and remembering what happened to the AUD gold price during the last GFC.
135kozpa will do for starters :)
LeDerp: how do you suppose they use a finer grind when a heap leach is unground? That's the point of a heap leach!
I used PXG's $1600AUD
PXG Price at posting:
34.8¢ Sentiment: Buy Disclosure: Held
