Do you seriously think they have a problem with finding a plant to buy/process high grade ore?
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Hopefully not - but an announcement that they have secure this would be good.
It's just JT being disingenous. There has been no suggestion there is a problem with possible processors. Quite the opposite. They just want to choose the one most suitable and profitable
Although in NZD terms, doing OK, but not really going anywhere: https://gogold.co.nz/Pricing.php
(Still feeling pretty positive about this one, though).
Someones keen, just took out 2mil at 1.8
Just saw this posted over at hotcopper and wanted to share and see if the figures makes sense here. When ore starts coming out we'll some great traction in the sp this year -
"Hello Everybody,
I was just thinking about all the negative comments. Some numbers run through my head, so please tell me if my numbers make no sense.
So we have a really high grade mine, if they use the concentrator, I understood that they can easily get a 100 g/t out of the mine.
here are some of my calculations:
5000t / year
5000*100=500000/31,5 =15 873 oz * 1100 nzd (1800 nzd-700 nzd( all in cost ))= 17 460 300 nzd
10000t / year
=34 920 600
20000t / year
=69 841 200
and this is profit, so I dont get what is bad about these numbers, they will have a lot more money than now and can expand more rapidly than before.
I am not calling myself any expert, but this makes sense to me"
Probably in the ball park. Don’t forget they can take out 20000 cubic meters / year which is about 50000 tonnes. So if you want to be really optimistic then your 70M$ is a tad pessimistic. The mine should be a profitable one. Time will tell how profitable. There may be a few fish hooks we are not aware of.
Sounds about right to me. Even if the outputs are optimistic figures, since this is the first year and they might for god knows why focus on prospecting the other place, the pessimist in me says the lower bound of their extraction would be 2500t (concentrated) this year. That's still ~$17.5M (see above) / 2 = $8.7M in profits. At a market cap of $39M, that's a PE ratio of 39/8.7 = ~4.5. That's unheard of, considering the average PE for gold mines is about 22, and considering it's really pessimistic compared to everyone else.
Another way I looked at it; considering there is about ~470,000 oz (taken from half-year) with another possible 300k-600k oz (https://www.nzx.com/announcements/306728, 2nd paragraph), being harsh that's 600k oz of gold. At $1800/oz price and $700/oz cost, that's $660M of profits NTL is sitting on. Even if they didn't maximise production potential and took the entire 25 years to mine all that (which they won't), that's an average of $26.4M per year, or an average PE ~1.5.
Seems like the best PE ratio going forwards in the world, let alone NZX. I've been hoping that everyone selling at 1.8c just hasn't run the numbers, or plan to buy back right before it rockets up. They make me feel like I'm missing something REALLY REALLY obvious, and that either my FOMO or the sunk cost fallacy are going to do a Brutus to my savings.
Disc: all in NTL, bought in at an average of 2.45c. Did swap some for ATM earlier, but swapped back in a nick of time before that too dropped -.-
Perhaps one thorn in the calcs is the estimated costs per tonne. While around $700/tonne might be right if they were trucking unconcentrated ore from the site, by the time you extract a larger amount of ore and then concentrate it, I expect the cost per trucked (concentrated) tonne will be higher. Either that, or I am tying myself in knots.
Edit: Another way or putting it. $700/tonne might be about right for trucked ore with 10g/tonne, but ore with 100g/tonne has a lot more pre-work done to achieve that (extracting a larger volume and concentrating).