Firering Strategic Minerals: From explorer to producer. Watch the video here.
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For what it is worth I have bought back in !
Thank you. I’ve not re looked at these contracts for ages.
So at 1700 we have have 1000 profit
At 2000 it’s 1300 profit.
So the 15% increase in pog that we’ve had - gives us a 30% increase in profit. (Obviously very raw and simple)
With gold at say 2100 then that’s around £6m a year?
Then with hard rock (now that alluvials have finished at say 750k a quarter 3m a year.
Would I be right in finally expecting £8m - 9m this year?
Re BR-Ascot. My assumption is that they are still trying to find the best npv figure and solution. No point scaring the market until you know what the options are. Tbh, I’ve given up believing what Colin says.
Under the terms of the Collaboration Agreement, MMP will receive 77% of all the operating profit produced from the permitted area through the performance of the contract by MMP when the prevailing price of gold is greater than US$1,250 per ounce. MMP's entitlement increases to 78.5% at a prevailing gold price between US$1,175 and US$1,249 per ounce, and to 80% when the prevailing gold price is less than US$1,100 per ounce. For the purposes of the Collaboration Agreement, "profit" is calculated as: Revenue on Sale less deductible costs (excluding non-cash items) and corporation tax. Any royalty payments due to any third parties (such as royalty and streaming payments) are for the account of MMP and will be settled from its entitlement under the Collaboration Agreement.
From July 21 RNS
For the MMP contract don’t we get x above the price of 1550. (From memory). Basically the contract is along the lines of guaranteed profit for empress. Guaranteed for mmp then we get get the risk portion essentially if the price is above xxxx?
I could easily be getting confused though.
James
I agree with your calcs. The DFS said 31K a year = 2580 oz a month. If correct thats about 75kg a month so I think CB is being overly optimistic when he said 80kg to 100kg. (Not like him eh? )
I'm expecting 2200 to 2400 a month when at full capacity.
As for % mark-up. I agree with you
POG 2000 700 costs = 1300 profit
20% increase in POG
POG 2400 700 cost = 1700 profit
So 20% increase in POG = 30% increase in profit
Iceberg
When you get a moment, what are your thoughts on Xtract not releasing any NPV r capex in the Open Pit Mining Interim Report?
Was that a Red flag in your opinion of it not being economic?
Is a pre concentration approach standard in these assessments and not a "last attempt" to make things work?
Hi Theiceberg
Obviously any forecast is all about the assumptions, but assuming 3000oz per month, 6% production tax, direct cash cost of 700/oz, 32% CIT and an ex rate of 1.25.
At 1700 I’m getting around £4m pa while at 2000 this is around £5.3m pa so clearly their is a nice bonus at higher prices but nothing like 200-300% upside from 1700, plus cash flow is still material at 1700.
Let’s see how the numbers look when we start getting to steady state production
Cheers
James
Update, can now buy 20 quids worth.....
Still the same for me A4444 - Can't even buy £200
I have been re-investing some funds in here. (finished today).
I still think Colin is a liability, but the price of Gold and the ending of alluvials(which cost almost as much as they made) are both important triggers.
The MMP contract massively rewards us for the Gold Price. (at 1700 we get not a great amount, at 2000 or 2100 we get much much more 200-300% more).
Anyway I won't be posting much, but thought i would say when I brought a few back.
I wish !
Move up to 10p and out
N/t to buy atm
For any amount.
Move up due???
13.33% WS why?
I suppose one bit of good news is that CB has spoken twice in the last week and the share price has not fallen. We just need an new RNS detailing the exact way forward for Bushranger in terms of new analysis and or Phase 3 drilling
Nice to see your back Iceberg, were have you been? always like to see what you have to say, what's your opinion about the share price of Panr and Xtr.
Not much time and as you say not much to actually say.
I am looking with interest particularly with the current gold price.
Gixxer - Iceberg posted analysis and there is nothing to analyse at the moment.
I wish my missus would take a leaf out of his book and refrain from endless chatter when she has nothing to actually say.
Iceberg even still invested here? - He's only posting on PANR
Stop sampling the merch !
Someone’s got to! with many more disgruntled investors here than happy chappies (and chapesses) at the moment. A month to wait for results of pre-concentration study, had interim report is amenable just looking at recovery losses from sorting so is looking more promising that not.
None taken
I can always rely on you for the Rosie scenarios Howie, nothing personal.
MaBakèr, that seems like too big a hope to hang one's hat on, but whatever will be, will be.
Cheers FtF
I’ve spouted a fair bit about it recently, I agree not all ore type characteristics are going to be amenable, but how I understand it the pyhorite in the ore gives the technology a good chance of better separation. The main goal will be to reduce Cap costs with a reduced throughput as is hoped as much as 50% reduction of the mill feed of the waste rock, and subsequent increase in head grade will improve the economics significantly, resulting in less pit optimisation drilling up to PFS for starters.
The huge advantage over incorporating into an existing plant is a ‘potential’ ;-) new plant can be tailored around the technology to streamline efficiency of the whole circuit. Smaller mill etc to save on power and op costs.
Watch this space, and do pop by anytime to play bat and ball ;-)