Thanks Buckshot
in response to
by
posted on
Dec 30, 2007 10:14PM
The company whose shareholders were better than its management
Great job on this project from the mining aspect. I'd like to have a look from the financial side. I'm hoping to stimulate input from others.
Let's say a major pays $20. per sh. for ARU. Cost $2.9 billion.
To reach production stage a capital cost $2.1 billion.
You have put out $5. bill. & it takes 2 to 3 years to begin income stream.
Allow cost of capital during that development period about 10%-$1.0 bill.
Now you are looking for a return on $6.0 bill. of capital.
For a margin of error let's assume we will receive $775. on 20 mill oz.
Using Buckshot's operating cost figure of about $175. means we net $600. over recovery period or $12.0 billion.
We have ignored the profits tax & the gold price trend but at 1st glance it appears you need a very positive view of future Govt. actions to commit to this project using above figures.
Looking for input!!!
Joltin