Napkin maths to guess HM3 profits, page-11

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jimone

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12/04/18

18:45

Post #: 32419162
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Originally posted by HairyRichard ↑

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

Expand

Times 2, Antena will be a winner IMHO, open cut even at 8 grams a ton, 5,000 oz a month should be a walk in the park compared to the underground.

All my opinion,, but that is my take on it.

OGX Price at posting: 7.6¢ Sentiment: Buy Disclosure: Held
12 Upvote

0 Great analysis

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