Now that OGX is on the verge of actually producing gold on an economic basis, I thought I would create a new thread dedicated to discussing the potential gold production rates we are talking about. I'll preface this by saying I am by no means an expert, and want everyone reading this to criticise my assumptions so that we can work out the real value of OGX (ie. remove the rose tinted glasses, or the incessant negativity). I've made some quick calculations below and would love if people could give me feedback (I suspect this calculation may be flawed due to an incorrect assumption).
So to start off:
Tonnes per hour = 25 (assuming just mill 3 operating at full capacity)
Tonnes processed per year = 219000
Gold grams per tonne = 25.33 average grade (from “Further High Grade Processed Through the Hammer Mills” announcement)
Gold ounces produced = 219,000 * 25.33/28.34 = 242,801
Gold price (AUD) = $1700
Revenue = $1700 * 242,801 = $412 million
Operating costs per tonne (AISC) = $550 (taken from youtube video on the "fundamentals" thread)
Total operating costs = $120 million
Annual Profit = $292 million
To me, this seems a bit unrealistic (ie. constantly running the mill 24/7/365). Also some profit will be reinvested in mine development and exploration. If anyone can poke holes in this feel free to do so, I'm on HC to learn from knowledgeable investors.
Cheers
OGX Price at posting:
9.7¢ Sentiment: Buy Disclosure: Held
