Thinking out loud again

With the BFS out at the end of the month I wonder how better we will fair from the old study with costs of £ 436 ( including 16.6 % contingency ) and production of 20,200 Au Eq Pa from 72,000 tpa
So what will the new costs be ? Mmm
We have a better resource with a higher grade than before
We have been told that the we will be averaging 23,000 Au Eq Pa from 72,000 tpa
We know have 24/6 processing , previously 16/6 , now much more efficient
We are having a new mining plan to increase efficiency and reduce waste
The mine life has increased and Cononish is open at depth and to the west
A 10% premium will be paid on the 25% Scottish Gold produced on site
We have 40% of the company marketing the Scottish Gold

So we will be producing more gold from less rock and at a higher grade through a more efficient processing plant with less waste and for longer and with a premium on Scottish Gold

Count down till we see the real figures until then here are the FP calcs
Cononish Production
18,000 Au Eq Pa @ £750 = £ 13,500,000
5,000 Au @ 10% premium £ 825 = £ 4,124,000 ( Scottish Gold )

Marketco
5,000 Au @ £ 400 = £ 2,000,000 @ 40% = £ 800,000


Sales Total £ 18,424,000

Costs 23,000 Au Eq Pa @ 400 £ 9,200,000


Gross Profit PA £ 9,224,000 or 19,042,136.95 AUD


1% = £ 92,240.00 Pa , NLR has 40 % ? Quite easy to see why he is so keen !

Assuming Marketco makes £400 per ounce from the Scottish Gold and production costs are £ 400 per ounce and that production targets are met etc , put your own figures in if you want I’m just thinking out loud


Marketco Rns , 25/02/14
The Finance Agreement includes a commitment from both the Company and the Investors to establish a new company ("Marketco") which will market a proportion of the future gold and silver produced onsite at Cononish in the form of dore bars. This product will be identifiable and marketable as Scottish gold and silver and Scotgold will undertake to sell it to Marketco at a premium of 10% to the Comex Fix less any costs associated with refining the dore bars. Scotgold will hold 40% of the shares in Marketco with the remainder being held as to 20% by public interest entities including the Strathfillan Community Development Trust with the balance being held by the Investors.