I need help. I calculate Perkoa could generate about US$16.2 million of SILVER per year. What am I doing wrong?
SILVER 53.9 g/t ROM so X 1mt @ 60% recovery = 32,240,000g divided by 31.103 = 1,036,555 troy ounces per year X silver price $21.88 = $22,679,823 less treatment $1/ounce = $21,643,268 X 0.75 (payable silver) = $16,232,451.
LEAD 0.46% head grade X 1mt @ 90% recovery = 4140 tonne concentrate @ 50% = 8280 dmt LEAD X 0.75 (payable lead) X US$2069/t = $12,848,490 less 10% treatment cost = $11,563,641
If Perkoa produces 90,000 dmt ZINC per year (last presentation) then the silver by-product would reduce cash cost of zinc by US$180/dmt AND lead by-product could reduce cash cost of zinc by US$128/dmt
FINAL CASH COST AFTER BY-PRODUCT CREDITS: $1500 - $308 = $1192/t ($0.54/lb) PROFIT TO BTR at current zinc price = $18m per year = 0.77 per share @ P/E of 7
PS Not to mention Kitumba ($1 per share minimum!) + $5m Perkoa special dividend + CASH = my 6 month price target: $2 (if world does not go backwards)
BTR Price at posting:
30.0¢ Sentiment: LT Buy Disclosure: Held
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