some off the cuff calculations, page-3

hi andalisa

number of share 98.8million

fully diluted market cap $26million

granting of mining lease will trigger a payment $1,000,000 to former owner barrick mining.

which would suggest some form of capital raising, seeing cash reserves will be depleted by the above.

if you want give me your e-mail address and i'll send you some info..

regards


Subject some off the cuff calculations
Posted 17/11/04 4:06:05 PM - 25 reads
Posted by andalisa
Post #421219 - start of thread - splitview

BMA Gold (BMO) issued a media release last night which announced a JORC-compliant resource of 526000 tonnes @ 19.3 g/t for 327000 ounces, with more gold in the inferred category.

BMO's market cap is currently 54M shares @ 25 cents or a total of $13.2M.

Using the firgures previously mentioned in HC, from MiningNews.net, we are looking at an $8M development cost if they truck the ore, and operating costs of $100 per ounce. This sounds reasonable, given the grade of the ore. They suggest a possible mining rate of 80000 ounces per year, which would give a mine life of 4 years based only on current reserves.

Gold is currently $560 per ounce, so the operating margin per ounce would be $560 - $100 = $460, which would give a total operating profit per year of $460 x 80000 = $36.8M before tax, etc.

Over the life of the mine the pre-tax profit would be $147M.

Compare these figures with the market cap of $13.2M.

Miniing is likely to start in 2005.

Orebody is expanding and open at depth.

Sounds good to me... I'm in.