No wonder someone is willing to bet the ranch on this one when...

No wonder someone is willing to bet the ranch on this one when you do the sums for Torrecillas.

Only $34m capital outlay to bring online a 100,000 ounce per annum producer with an operating cost of $400 per ounce!!!!!

That has to be the best prospect in the world of gold mining at the moment. Most similarly producing assets are looking at an outlay of over $100m to bring such an asset into production. And most of those would have a higher production cost as well.

I ran the numbers through a spreadsheet and it means Torrecillas should have a NPBT of about $78m per annum @ $1250 gold. That means a payback of under six months - quite incredible when you think about it.

If they can pull this one off (and that is a rather large IF going on previous management experience) then the share price should be $2 odds at least once Torrecillas is fully producing.