Modelling Early Mining Initiative

Hi Everyone,

Thought I would look at some simple modelling for the early mining initiative, so we can discuss and look at it pragmatically.

Lets do a scenario of 8,000 Tonnes per month at 4g/t.

Gold (Grams) = 8000 x 4
32,000 grams

Convert to ounces (Use 31.3 for the proper gold conversion) = 1,022 ounces (Lets call it 1,000)

Lets hope they get an AISC of about $1200 USD in line with previous mining leaving margins of roughly $500 USD.

Profit from mining = 12,000 (12 months x 1,000 ounces) x $500
$6,000,000 USD

I think this is a great start and considering we are chasing $50,000 million capex. This early mining initiative shows the ability to service debt financing.

Looking forward to seeing them work through this, all in all not many mining companies get opportunities to service debt financing and showcase this to potential financiers.

Feel free to critique and make your own models, this is a simple one!