" but still a reasonable figure though - Hoges in darwin"
Yes I would have thought that US$93,100,000 was a fairly tidy figure myself Hoges but some people are died in the wool doubters of the first order.
Yes if RAU is aiming at producing 100,000 ozs per year from Amayapampa and given the current gold price of around US$931 (or thereabouts) then the figure above must be the end result in gross terms in US dollars.
Another way to look at it is to say that based on a production level of 100,000 ozs per year then for every US$100 difference between the production cost per oz and the market price for gold then RAU would make US$10,000 per US$100 per difference.
So if the difference is a mere US$100 between production costs and sale price then RAU's "profit" per year would be US$10 million
If it is a US$200 difference then the "profit" becomes US$20 million .......... and so on up the scale.
So that begins to put things into perspective. We have had some posters in the past scoff at the idea of RAU being able to undertake such a development since it would cost about US$40 million to get into production.
Well if production of 100,000 ozs can be achieved and the gold price remains up around US$900 an oz then the time to recoup the "investment /loan" could be relatively short.
Anyway that will be what the BFS will be looking at and calculatiing. But as JK said just the other day this is a very good time to be constructing a mine since the gold price is at a good level and costs are coming down.
So despite Macrae's mocking, RAU has a promising story to tell in the months ahead if various stepping stones can be put into place.
BIG Price at posting:
2.6¢ Sentiment: Hold Disclosure: Held
