Ann: Definitive Feasibility Study Completed -Tuca, page-8

re: Ann: Definitive Feasibility Study Complet... I decided to dig up the DFS. Well, 11 month payback with price of gold about $1500 USD. Where are we at now? $1650

Cash surplus @ 1200/oz listed as $655 mill
Cash surplus @ 1500/oz listed as $993 mill

That is leveraged a lot to the price of gold.

Now, if I read the recent hedging if they draw down finance, we have some at $1600 and some at $1700.

So, let us just say Gold sits around $1650 over the project. $300 / oz rise (1200 to 1500) gave $340 mill extra. So I can only 'guess' that 150/oz rise from 1500 to 1650 gives $170 mill over the $993 mill.

So (Danhoff calc) Cash surplus @ 1650/oz $1163 mill

Now, DFS does not talk about ore. We have latest statement of 20-30% reduction in processing cost per oz. Now the calcs get rough here. But the mine, the DFS says, is 1.46 mill oz. And cash cost is $557 oz. So, I will multiply to get the overall cash cost on LOM = $813 mill. So let us reduce that 25%, so we will save $203 mill on cash costs. Therefore that directly goes onto the $1163 mill cash surplus, so now we have

Cash surplus (with 25% reduce in cash costs) @ 1650 = 1163 + 203 = $1366 mill

Now of course we all expect the price of gold to hit $5000 soon, so that then makes BDR worth 5.89 Trillion-Gazillion dollars (this last sentence just a bit of fun).

So, I checked the BDR shorting today and there is a bit. Someone is playing with fire?