Now that the merger is done & dusted we have the opportunity to look at the plans for the Combined Resources under AGR Management.
Gold Production with average Grades of 31g/t and 37/g/t. Looks exciting to me. This is my take on it.
My Figures:
At 31g/t I'm going to say 20g/t with dilution
• So x 50tpd = 1000g/day (35oz/day)
• Oz/pa: 35 x 350days = 12,250 oz
• Revenue pa: $3.5k/oz x12,250 oz. = $43m/yr
• Net Profit (Costs $600/oz, $7.4m) ~ $35m/yr
Assumptions:
• Net Costs $600/oz
• 350 days yr Processing
• Dilution of about 35%
• Gold Price $A3,500/oz (currently $A3,512)
• Assume 1.2B Shares that's profit of 2.5c/share.
Conclusion:
• These are just "ball park" .... DYOR
Based on these assumptions
• Yearly Profit 3.5c/share
•. Current Share Price of 2.1c
• That would be about 70% > current share price
NB: I would not post this unless I'd gotten my pockets full of AGR Shares & had finished buying. But as I said earlier DYOR.
(20min delay)