Posted On: 03/08/2014 3:08:15 PM
Post# of 34
Cocktail Napkin mathematics
I took all the recent grades per ton and found an average grade of 1351 oz per ton.
Now with silver selling at $21.00 per ounce and lets say it takes $6.50 per ounce to mine and mill the ore that leaves a profit of $14.50 per ounce multiplied by the average grade (1351/t), well lets call the average grade 1,000 oz per ton that gives us ore valued at $14,500 a ton.
Now the company can sell from the sample piles up to 15,000 tons per year before the mine is fully permitted….. so they have a short term cash flow of $217.5 million dollars…..
Those numbers must be out of whack I think we can expect $5 million in sales this spring/summer that would backtrack to giving the ore a value of $333. per ton which is a grade of 23 oz per ton … probably more realistic at that rate.
Bottom line with 6 million in the float they do not need to go to the markets to raise cash to finish the adits and bring the mine up to current safety standards
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