capital raising, page-3

Mal, they have less that $1 million left, that's why. I'm sure they would love a large placement, however reality shows us it will most likely to be small placement again.

How else are they going to built a decline and processing plant? Through cash flow? Not a chance.

MCO are aiming at 50 tons per day. It's not as simple as guys on H/C say to double output. The company says 50t, so lets deal with that.
50 x 365 = 18250t
Lets say grade is a good 1/2oz p/t.
Cash costs $280/t = $560/oz
Lets say they make a healthy $500 per ounce and produce 9125oz pa.
Profit = $4.5 million
This is a very optimist, I might add.

Now last years expenditure came in at $3.6 million.
$2.8m on exploration, $0.61 million on administration.
$4.5mil - $3.6mil = $0.9 million.

So they made $0.9 million for the year.

They need $20-30million to build infrastructure, decline, mining fleet, processing plant etc.

Where is this coming from? Or will you be happy for them to produce 10000 ounces a year?

I'm sure Chief and the like can change my figures.


Have a look at this study. A declining grade is a reality. The good, easy high grade gold is long gone.

http://www.mpi.org.au/attachment/d016df19778a7c563cd1c99afe29c43a/f2065acefd9648fc79d94181e9032269/1_SustMining-Aust-aReport-Master.pdf