gibba, they have the exploration target, we won't know what's there until the site is drilled. If there's anything at Mayoko that resembles the exploration target, it'll be fantastic. I can't wait until the BFS & DFS start being prepared. I think the numbers that will be arrived at in those studies will make people sit up and realise this company.
A very rough, back of the napkin calculation of operating revenue if EQX can get into production by the end of 2012, start of 2013;
3,000,000 tonnes DSO p/a x $70p/t = $210,000,000 operating revenue.
($100p/t sale price for DSO - $30p/t operating costs = $70p/t. I think these figures are quite conservative also, but who knows what will be happening in 18-24 months time)
$210m operating revenue p/a doesn't look too bad when the market cap of the company is ~300m does it?
Plenty of water to go under the bridge still, the above is just a rough guesstimate at the potential there. I don't think the CAPEX will be astronomical either considering the size of the initial target production meaning mine infrastructure will be quite small (3mtp/a), and the fact that the port and rail are already in existance. There may need to be some upgrades to the existing infrastructure though.
EQX Price at posting:
$3.10 Sentiment: LT Buy Disclosure: Held
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