As per above Mar 2021 qtr cost figure, the cost in processing the LG ores of 0.5g/t, it is about $20.79+$2.74 ~ $24/t. In processing 700,000t, the cost would be $16.8M.
The gold extracted will be 700,000*0.5/31.1(oz)*.88(recovery rate) =9.9Koz Revenue with gold price @ $2,600/oz = $25.74M. That should clear $8.9M of positive cashflow.
The above may not include royalties, etc.... cost perhaps in the $2-3M range. Human resource is about $1.7M.
The above should clear ~$5M per quarter. In a year, that should be $20M of positive cashflow (without exploration cost) while still holding $17M in cash position.
Is the above viable?
DCN Price at posting:
9.5¢ Sentiment: Hold Disclosure: Held
