"(3) What is the the NPV range of the DCF #'s @ at 20 TPD, 40 TPD or 60 TPD mill plan?

I think stock is worth $1.10-1.20 after permit.Dead money for 2 years after that

Intelligent rebuttals welcomed. But please work your #'s over the fully diluted share count of 450 million wit assumptions of all the warrants and 15% underwriters over- allotment option"

I'll have a go at it.

as a 1st approximation,
assumptions:
gold reserves: 17Moz @ 1.13gm/t
mine cost: $300M
cost to buy back mine equipment: $25M
mining equipment on hand: $25M
noteholder liability: $100M
342M shares O/S
@ 20,000 t/d ,oz/yr = 20,000 t/d x 1.13 gm/t x .0321 oz/gm x 365 d/yr = 265,000 oz/yr
@ 20,000 t/d, mine life = 17M/265000 = 64 yr

going forward,
KRY will retain a prorata 1/3 ownership
KRY will convert noteholder liability to a CRRC Note Facility
The Jun 2010 PP will increase O/S to 342M + 70M = 412M
The Jun 2010 JV with the exercise of 19.9% minority control with premptive rights to CRRC will increase O/S to 412M + 102M = 514M
assume 102M shares acquired by CRRC will be at $0.40/sh and will reduce the Note Facility by 102Msh x $0.40/sh = $41M
assume $25M credit to Note Facility for mining equipment on hand
therefore debt principal to be retired from production over 5 years = ($300M + $25M)/3 + ($100M - $41M - $25M) = $142M
assume mining cost: $340/oz
assume sell price: $950/oz
therefore profit: $610/oz
KRY yearly cash flow in absense of debt retirement = ($610 x 265000)/3 = $54M

NPV calculation:
assume cost of money: 8%
assume production start in 2 yrs
assume $142M will be retired over 5 yrs @ $36M/yr
assume $18M cash flow yr 3-7, $54M cash flow yr 8-66

NPV = $452M
NPV/sh = $0.88
assuming 40% Ven corporate tax, the NPV/sh after tax for a buyer with this JV in place is $0.88 x .6 = $.53

For the case of a 30yr mine life:
oz/yr = 17M/30 = 567,000
567,000 oz/yr equates to 43,000 t/d @ 1.13gm/t
assume mine cost: $450M
assume buy mine equipment: $50M
assume debt principal to be retired from production over 5 years = ($450M + $50M)/3 + ($100M - $41M - $25M) = $200M
assume $200M will be retired over 5 yrs @ $51M/yr
KRY yearly cash flow in absense of debt retirement = ($610 x 567000)/3 = $115M
assume $64M cash flow yr 3-7, $115M cash flow yr 8-32

NPV = $935M
NPV/sh = $1.82
assuming 40% Ven corporate tax, the NPV/sh after tax for a buyer with this JV in place is $1.82 x .6 = $1.09

IMO,

Regards