A Northern Star Mark II ?, page-35

Dear inverted

i do understand what you are saying, but there may also be more than one way to cook a goose …

as an exercise, let’s please assume than I may be right and by the middle of 24 they are producing gold at the rate of 100,000 ozs pa, and by the end of 24 it’s 150,000 (1.2 mtpa x Av. 4 g/t)

At an AISC $1750 the company could be generating cash to the tune of $150 million to $200 million per annum.

$30 million annually should be spent on exploration … finding more high grade mines

The first years of that cashflow should be tax free because of accumulated tax losses (must be nearly $400 million) and could be used to buy back shares, build another plant if exploration working, pay dividends etc etc

With Byrncut living on-site and now part of the family, I think it is possible that OBM could even have 3 declines within 36 months, each mining up to 600,000 tpa feedstock into a further upgraded plant (1.6 mtpa) with head grades higher than the current stated reserve grade of 4.3 g/t (which does look conservative based on past underground Av. yields at Riverina)

1.6 mtpa x 5g/t = 250,000 ozs

The more gold produced, the more cash produced, the more shares progressively repurchased … and those shares would rise