at present for RRR shareholders is where is Red Rock's July El Limon tranche payment of $225,000? It's the 25th tomorrow.
In the RRR rns of July 1st there seemed to be a total breakdown in communicaion with PARA with PARA refusing RRR permission to convert their $1 million promissory note into PARA shares. And then RRR saying if the dispute isn't settled in 10 days then they'll seek a "binding arbitration" in London under ICC (international commercial contracts) rules under English law. Though the question is do PARA / CML remotely care about what someone decides in London under ICC rules?
This El Limon sale was supposed to be for $5 million but so far RRR have received a paltry $775,000. I personally find it amazing that RRR seemed to have signed over the complete owning rights to El Limon when only such a small amount of the sale money has currently been received. So from what i can gather this dispute only seems to be about money owed and in most countries when money is owed then it's not a criminal offence. So because RRR demonstrated to PARA president Randy Martin that RRR have a weak tootlhess reputation in chasing money owed (FPM loans) then is he remotely bothered by about paying RRR any money owed?
Of course all fears may be alleviated tomorrow with an RRR RNS saying $225,000 final tranche has already been paid into Red Rock's bank account and also the $1 million promissory note has already been converted into PARA shares.
I don't usually try to work these figures out. So here goes:
RNS says in June
(1) 784.3 tons of rock processed
(2) Each ton of rock averaged 4.71 grams of gold ......
So 784.3 x 4.71 grams of gold = 3694 grams of gold processed in June.
I believe gold is weighed in troy ounces. So there is 31.103 grams in every troy ounce. So converting those 3694 grams of gold into ounces means 3694 grams divided by 31.103 = approximately 118.76 troy ounces of gold produced in June.
In the PARA May 3rd rns they say if they ever produce 20,000 ounces of gold a year they would they would like to get "all in sustaining costs" down to $600 per ounce of gold. But obviously no where near reaching those targets at the moment so lets make up a number and say that current "all in sustaining costs" are $850 an ounce and during June the average price of gold was $1250 an ounce: so at present PARA lets guestimate are making $400 on each ounce of gold.
So during June approximately 119 ounces of gold produced at my guestimated profit of $400 per ounce = $47,600 profit.. Now lets work out 1% of $47,600 profit = $476. Of course Red Rock are supposed to be getting 3% of any profits at El Limon. So 3% of $47,600 would work out at $1428.
I note in a couple of PARA rnses (June 14 + July 21) the Ball mill keeps mechanically breaking down and so maybe it's incredibly expensive to fix this Ball Mill and consequently at present El Limon is loss making?
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