If you assume that the ore we use is average 4g/tonne of ore, could be higher or lower, there are 28g to 1oz of gold, and we assume that we make $400/oz of gold after costs and payment to B2gold, if we transport 30,000 tonnes of ore in 30 tonne wagons then that's 1000 wagon trips with each wagon producing approx. $1,710 profit (30 tonnes x 4g divided by 28g/oz x $400/oz). This would give us $1,710,000 total profit. How long to excavate and transport 30,000 tonnes is anyone's guess over a 150k round trip but I would assume the company would want to minimise the number of excavators and trucks to minimise costs. Hope my maths haven't let me down on this but stand to be corrected. Obviously there are many assumptions in these calculations but it gives a rough idea as to what we are talking about.
Not convinced it's IFC who are selling looking at the RNS which states they still hold 3.975m, there has been a huge amount of shares sold over the last two weeks, guessing at 2-3m, far more than would suggest IFC if they still hold 3.9m.
Interesting to see the 100k sell posted this morning at 10.41am, just before the RNS informing the public that we had raised capital, has now been reversed out late in the afternoon, could that be an attempt by the mm's to generate some stock before the RNS or is that just me being cynical again.
With the final flurry yesterday of the 3 x 250k sales, the fundraising announced today and the rise in the sp I would suspect that the institutional dumping of shares is over, no doubt we will see at approx. 4.20pm today, hopefully onwards and upwards from here. GLA.
At least we have a reason for the supressed share price and, as said previously, once the seller is out of the way this should move up nicely, as we turn blue I have every confidence that more investors will come on board. I'm guessing MC is keeping his powder dry until the seller is gone before trying to build the share price before raising some working capital, at this rate I'll get more shares across to my ISA in April than I thought this year. Hey ho.
Irrespective of the way the market views us at present this project will produce gold at a huge profit within the next few years, the company will generate cash and will either payback debt quickly or reinvest in a way that adds value. Lets not forget we don't generate income at present so are at the mercy of the MM's, all that will change as gold is produced, that's always assuming we don't get bought out prior to that, personally I don't think that will happen this close to production unless it's at a substantial premium which recognises what we have here. The board have been steady all through this process and I bow to their knowledge of this type of project, I can't see them quitting any time soon. I for one am still confident this will be a major gold producing district within the next few years, B2Gold started with nothing and look at them now, I'm sure their investors felt as we do before production.
Can't be too long now before MC releases the details of the Mestiza feeder pit which he hinted at when he did the Mining Capital Conf. in early December, at the time he seemed to be bursting with excitement at what he knew at the time. Nearly six weeks on I would hope that the information is ready to be shared with the markets any day soon.
Interesting to see the last two trades today,12,924 and 621 had a strike price of 30.7499p, just 0.0001p below the mid-price of 30.75p. These were obviously buys but for some reason the MM's wanted to have them show as sells, after all, the saving on the first trade would only be 1.3p and on the second trade 0.06p if struck at mid-price. Now I'm not a conspiracy theorist but...…..as mentioned by Condorpilot yesterday, this range has been held for a while now irrespective of some big purchases.
My understanding is that we are 3 yrs off the next elections, Nov 2021, by which time hopefully we will be in full production with income for the country and employment for the locals, as with B2B over the events this year, I don't expect it to affect our progress either into production or once we are producing.
With all the shares purchased over the last couple of sessions it looks like the Ask is being held whilst bringing up the Bid price to encourage some Christmas sales before letting the Ask price rise with the MM's making their Christmas bonuses selling all the shares they have hoovered up, only problem is there doesn't seem to be many interested in selling at these prices, I wonder why. Obviously only my opinion.
Lets not forget that MC stated at the Mining Capital Conf. last week that he had made 2 applications for additional concessions, notification of one this morning, hopefully notification of a further high potential concession granted in the near future.
Very impressed with MC, no wonder 'Valuerebel' decided to invest after hearing that presentation, if I wasn't fully loaded here myself I'd buy more having seen how upbeat MC was. With regards to BBNews it was interesting to hear MC is looking at various ways of financing the next requirement for funds including forward sales and a potential for upto 30,000 grams of gold being processed through a 'neighbouring' mine if possible to start the revenue stream before the mine is built. I would suspect, after paying a premium for the processing, this could generate approx. $12m. (30k x $400). Also interesting to hear MC having to hold back on the grade of gold from the current drilling programme, can't remember which vein set it was without listening again, but he has the results and he looked ready to burst because he couldn't say, hopefully that news will be with us shortly, perhaps a Christmas bonus for us all or he may just wait until trading starts in earnest at the beginning of January so that the impact is not lost over the Christmas period. All-in-all, two great upbeat interviews.