OGX 0.00% 0.3¢ orinoco gold limited

Napkin maths to guess HM3 profits

  1. 3,840 Posts.
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    Here's what I've come up with based on the information we've already been given.
    Happy to be corrected if I've made mistakes here or unreasonable estimations.
    I've never found a spec of gold in my life.

    OGX EARNING CALULATIONS
    Assuming our Dore sells for 75% of the price of gold
    Assuming HM3 - 25t/h running 10 hours a day (250t per day)
    Assuming 6 running days per week
    Assuming ASIC of $1100/oz

    Previous hammer mill tests from batches 1-4 gave an average gold recovery of 38g/t from samples across at least
    21 different locations across the mine
    No reason to expect a lower recovery rate from HM3

    38g/t:
    250 tonnes * 38g/t = 9500g = 335oz (Dore)
    335 * 0.75 = 251oz
    251 * $1700 = $427k
    251 * $1100 = $276k
    Profit = $151k per 10 hour day ($15.1K profit per hour)
    Yearly profit from HM3: $47m

    30g/t:
    250 * 30 = 264oz (Dore)
    264 * 0.75 = 198oz
    198 * $600 = $119k (11.9k per hour)
    Yearly profit from HM3: $37m

    25g/t:
    250 * 25 = 220oz (Dore)
    220 * 0.75 = 165oz
    165 * $600 = $99k ($9.9k per hour)
    Yearly profit from HM3: $30m

    20g/t:
    250 * 20 = 175oz (Dore)
    175 * 0.75 = 132oz
    132 * $600 = $79k
    Yearly profit from HM3: $24.6m

    15g/t:
    250 * 15 = 132oz (Dore)
    132 * 0.75 = 99oz
    99 * $600 = $59k
    Yearly profit from HM3: $18m

    10g/t:
    250 * 10 = 88oz (Dore)
    88 * .75 = 66oz
    66 * $600 = $39k
    Yearly profit from HM3: $12m
 
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