CTO 11.1% 0.4¢ citigold corporation limited

A rough calculation of what might be possible:production of...

  1. BH!
    2,521 Posts.
    A rough calculation of what might be possible:

    production of approx. 4,000oz (an 11% quarter-by-quarter increase).

    Assuming June Qtr the same: 3,900oz x 1.11 = 4,330oz.

    Add 40% increase in production (due to 24/7 mining coming): 4,330oz x 1.40 = 6,060oz.

    Add triple electrical capacity: 6,060oz x 3 = 18,180oz.

    Add another 11% increase for the Sept 08 and Dec 08 quarters: 18,180oz x 1.11^2 = 22,400oz.

    So, even without taking into account the fact that they will be mining higher grade ore in coming quarters, if they can actually use the increased electricity and around the clock shifts to their capacity, it is very feasible that they will come close to the 100,000oz p.a. rate by Dec 08.

    Remains a buy, IMO.
 
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