Ann: Proceeding with the Development of Lorena Gold Project, page-25

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shane.hardy

3,012 Posts.

01/08/15

15:04

Post #: 15734822
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Originally posted by griffithdale ↑

Gents,

I am not sure if everyone is working off the same numbers but this is how I see it. I may be wrong.

Gold is currently around $US1,100. A75c to $US1 maybe even lower. That makes gold A$1,466 / ounce.

From my understanding the original MAR/BCD deal was that all up costs, including BCD was A$900 an ounce. Thus making $566 / ounce profit which originally would be 50/50 MAR/BCD, giving MAR a profit of $283/ounce.

For estimated 30,000 ounce of gold per year = MAR profit of $8.49 million profit.

Do the same numbers at gold at US$1,000/ounce and same exchange rate annual profit is still $6.5 million. Remember also MAR has some exploration tax free credits of I think 2 - 3 million that can be offset against initial profit.

Now there maybe a gold concentrate premium etc. but I think it is still a profitable project, but it has to get going and I am going to poke them shortly to see if I can stir the pot a bit more. I am still concerned about the new deal not being the best deal. But maybe the deal is now MAR 57% and BCD 43% but MAR will have to pay MKS some interest costs to finish the plant.

The other possible cost factor is that whilst the falling $A is good for selling gold in $US terms, it does make it more expensive to import chemical reagents that are generally used in the gold concentrate production as most come from China and are sold in $US terms.

Just my view of things.

Griff

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pretty much correct Griff......only the chemical costs are not ours ...also the 30% is only the first year then it scales down...........the only losers out of all this was BCD share holders they should be pressing charges for RAPE. all in all things are starting to move forward for MAR a few new directors is whats needed.

MAR Price at posting: 0.6¢ Sentiment: Hold Disclosure: Held
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Ann: Proceeding with the Development of Lorena Gold Project, page-25

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Ann: Proceeding with the Development of Lorena Gold Project, page-25

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