Those that have read the few posts I make will know that I'm not technical by nature and that my feelings I develop towards an investment are not founded upon surety but more gut and counter intuitive to current thinking.
I like to pick stocks which no one wants that potentially have a higher MC than currently inferred. I think back to when I purchased my first parcel of AGY at 2.9 or 3 cents. The same day (cant remember the posters name) a poster on HC posted something to the tune of "good riddance - thank god I'm out of these shares. It was me that purchased them all. The rest is history.
There will always be someone who doesn't like a share for a particular reason. That's Cool!!!
Patience is the key. It's no use lining up at the gate after the HM3 results, as any positive news will cost you double the current SP. And yes the HM3 results may be negative but if you are not ok with that then why hold the shares? IMO you would only hold these shares if you believe the HM3 results will be positive.
I just wanted to use an updated gold price
I have also reflected the increase in SOI to reflect the most recent Share Issue and have included the options and have assumed they will all be converted.
I like to use a profit of only $600 per ounce but another $100 per ounce profit would add another $5million to the bottom line or another 3 cents per share at a recovery rate of 20 gms/tonne for the high grade ore and 9 gms/tonne for tailings. i.e 21 cents per share.
Theres plenty of upside for the optimists !!!!
If we were to achieve 5000 oz per month at $800 profit per ounce and were valued at 16 times earnings then 57 cents per share is feasible.
With expected fall in the dollar over coming months and a likely increase in the gold price this could well become the perfect storm. Other mines could be rapidly opened this may well become a 100,000 oz mine.
GLTAH tomorrow on an expected re rate (est 15 - 16 cents) and especially on HM3 results in early April (est 25 - 30 cents)
Cheers Rb
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Orinoco sp V's gold recovery rates ***Assumes a 6 hr run of high grade ore at 25 tph x 7days per week |
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Also assumes gold price of US $1350 tonne & exchange rate $1.30 Au to $1 US ie AU $1755 oz |
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I have also assumed a conservative profit of $600 AU per oz with a MC of 8x |
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I have also assume that all options will be converted therefore all equations are on a fully diluted basis |
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I have added the anticipated second shift of tailings recovery and as above have assumed a 6 hr run of tailings at 25tph x 7 days per week at a recovery rate of 9gms/tonne |
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Gold Recovery rate |
grams / tonne |
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21 |
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Share Price |
0.13176015 |
0.144309 |
0.156857 |
0.1694059 |
0.181954 |
0.194503 |
0.207052 |
0.2196 |
0.232149 |
0.244697 |
0.257246 |
0.269795 |
0.282343 |
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Shares on issue |
1342950000 |
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Profit per tonne AU$ |
600 |
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Gold price |
1755 |
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output per week |
1050 |
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tailings recovery |
9 gms/tonne |
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