5.5 years of mining to make $1000 per oz currently and make $106million profit (after all costs) in 5 years. And this to me looks pretty conservative. And that includes the construction of the plant at Kal East. It doesn't include the ability to double that production with the addition of an already owned additional ball mill. I think we all know that this will more likely be mined for 15 years+ at a far higher rate after the first couple of years as all the pits are open in most directions and they're back drilling this month.
Looks almost certain they will toll treat Myhree and Boundary deposits for 52,000 oz of production. This toll treating will reduce the oz in the PFS, but they will certainly add more than that through the next drilling campaign. Hard to know what 52,000 oz will bring in revenue cash flow wise, has anyone got some examples of other deals to compare and get an idea? If they could get $600 an oz, they would have revenue of $31mill and only need another $50mill to see this into production.
They have just raised $30mill, but those funds are needed for Coyote in the short term to get into production there. Once in production there and having settled the purchase agreements and toll treating Myhree, they can probably finance the rest with a pretty quick payback period before getting Paulsons going.
Hard to believe the Market Cap is $77 million currently. Clear pathway to three operating gold mines with resources wide open at all three.
BC8 Price at posting:
45.0¢ Sentiment: Buy Disclosure: Held
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