Ann: Letter to Shareholders, page-90

Alright, so let's see if we can get someone from the company to confirm this.

Starting with the below assumptions:
- Gold Price: $3,500/oz (could be $4000+ or could be $3000, but let's just assume this given we're around this price currently)
- AISC: $2,000/oz (Probably too high considering the average grade, but let's be conservative given there may be underground mining)
- Total ounces: 300koz (Supposedly it's a highly prospective area, so I'm sure there'll be a lot more than this, but once again, being conservative).
- Management fee: 5% (This is assumed to be 5% of the $2,000/oz and only for the first two stages after Milestone 1 is acheived. ie. No fee for the remaining 227koz)
- GL's Royalty: 4% (this is assumed to be on profit and not revenue. If that 4% is based on revenue instead, GL get another $18M profit on top of what I state below)


So according to the above table, the directors stand to profit $60M in the first couple years (assuming BCN can produce 36koz/year given the increase in head grade) and another $14M for the remaining years. That's just assuming there's only 300k, there could be much more in which case the directors just continue getting that 4% until it's all mined, I think.

On top of that, as Noddsy said a few posts up, the directors also profit from the money BCN are making. Given they own about 20% of the company, they'll profit another $72M while that 300koz is being produced.

So in total, the directors will make about $146M from the deal. For something they spent about $1M of their own money on in legal fees, I think this is a bit of a joke. I understand BCN obviously make a lot of money after year 2 too, but $146M seems well overkill for the directors' reimbursement for finding the project.


If my assumption on the 75% for the first 36,250oz is wrong and it's only 50%, the $146M comes down to about $132M. Still overkill.


Please let me know if any of my assumptions are wrong, I just want the truth instead of all this confusion.