I'm going to make the call now that Norton will never get into production.the gold price is clearly on a downtrend and is currently at around $1230 per ounce.Now I have stated before that if the previous owners thought it wasn't worthwhile to operate the mine when gold was $1800 per ounce then mnm are going to find it extremely difficult at current or even lower prices.Even worse is the fact that they aren't even going to produce pure gold,but a concentrate ie bags of gravel containing some gold.now if say one batch of concentrate(gravel&gold) contains one ounce of pure gold how much can this bag of concentrate(containing 1 ounce gold) be sold for? I would suggest well under the spot price($1230) as the buyer of said concentrate will need to put it through a costly process to separate the gold from the gravel and then after adding together their separation costs plus the cost of the concentrate they will want to make a margin of at least 15%. I think mnm would be lucky if the get $750 per ounce equivelant for their product,which is around the same as their production costs,meaning there is no profit in this project unless price of gold rises substantially,but all signs point to it going lower.
MNM Price at posting:
1.6¢ Sentiment: Sell Disclosure: Not Held
