looks cheap, what am i missing?, page-17

Guys, guys, guys...

I hate to rain on your parade, but check out the tonnages that they are dealing with. TTC, this is what you're missing.

Posted on the Day-Traders Thread

KMC: Production throughput is exceptional for their market cap, but be careful with 'mining on a calculator'. We don't know how large the resource is, and also you are assuming that the ~4g/t grade is sustained throughout the mines operation.

At a really, really rough guess for a recovered reserve...

Each stope is about 7m high, 7m wide and 150m long as per industry standards and page 1 of the August 25 announcement.. Each stope would contain around 20kt of ore assuming a groundmass density of 2.7g/t.

It looks like there are about 12 stopes being planned as per page 3 of the same announcement.

So you are looking at a total ore tonnage of about 240kt. If they mine 700t a day, then the mine will only last about one year.

Just be careful with those PEs.