Options exercise, page-29

There are not a lot of figures to go on at the moment,but if we are to use the current quarterly sales and estimate the June sale,it would appear that the lulo joint venture will be a cash flow positive starting from the end of the June quarter.
April sale 790k
May sale 2.9 million
June estimate sale ? 500k low ball figure
Total before tax and sales fees $4,190,000.00 based on about 14,000 cubic meters processed.
During the current quarter costs would still be similar to previous quarters due to the same amount of equipment being used and same hours worked.
Taking into account previous money spent from diamond sales on exploration,total costs per quarter should be around 4.5 million for exploration and mining plus about 700k for administration.
Total project and company costs I estimate to be about 5.2 million per quarter for the processing of up to 10,000 cubic meters a month.

The thing is,even tho the company is exploring and mining at the moment,they are still using the same quantity of equipment and doing the same hours as has been done over the past twelve months.
This means that for a few extra employees and current DMS plant ramp up,the process rate is to increase to about 30,000 cubic meters a quarter for potentially more than the current quarters revenue.
Then for the cost to run another fleet of equipment,lets say another 900k a quarter,the revenue would then increase again.
So once 60,000 cubic meters a quarter is being processed with the addition of the new fleet,total costs will be about 6.1 million a quarter plus about 1.2 million a quarter to pay off the new fleet over 12 months.
60,000 cubic meters will produce at least 6,000 carats for a revenue of about 12 million dollars based on $2000.00 a carat.
At this point in time the average carat price would need to stay above $1000.00 a carat for the joint venture and company to be in a cash flow positive position.