Update21 May 2019 18:31
Hi All.
In the video he declares 75t. Going back to 2010 and 2011 the concentrate grades per tonne ranged between 90 to 130 g/t. Given that then this could mean roughly (100 x 100) / 31 = 322 ounces plus some silver, so £300,000 plus towards the loan. Not bad. I bought a holding today to hold into the next year or more. I like the target production, the story not changing, the amount of his own personal cash invested and seeing it be it slowly through to production. We'll see once it's all on full production.
Target production = 25k oz = £25m per year in revenue, current market cap £13.5m.
Remember this.. https://www.galantas.com/operations/interim-2012-resources-and-preliminary-economic-assessment/
The Galantas evaluation covers three scenarios, all at a gold price of $1,375 per ounce, as stated below. A. The targeted annual rate of 50,000 ounces gold within concentrate, but allowing one year for construction and mine development with no production, then the second year at a reduced rate
of 30,000 ounces. This scenario gives a mine life of 5 years after the first construction year.
B. An annual rate of 40,000 ounces gold within concentrate, again allowing for one year construction and mine development with no production, then the second year at a reduced rate of 30,000 ounces. Costs were split into ‘fixed’ and ‘variable’ but with labour costs treated as fixed, i.e. the same as for the 50,000ounce case. This scenario gives a mine life of 6 years after the first construction year.
C. An annual rate of 30,000 ounces gold within concentrate, again allowing for one year construction and mine development with no production. Again, costs were split into ‘fixed’ and ‘variable’ but with labour costs treated as fixed, as for the 50,000 ounce case. This scenario gives a mine life of 8 years after the first construction year.
The average ore grade used in the study is that calculated for the combined resource of Joshua and Kearney veins, 8.19 g/t Au, with an allowance for mining dilution of 10%, considered appropriate for the mining method to be employed.
Net revenues are calculated without corporate taxes, amortisation, depreciation or the cost of financing. Case A, at 50,000 ozs/year, gives total Mine Life revenue of £80.1million after deduction of capital and operating cost, IRR of 81% and NPV at 5% discount rate of £62.6million (US$100.2million).
Case B, at 40,000 ozs/year, gives total Mine Life revenue of £75.4million after deduction of capital and operating costs, IRR of 69% and NPV at 5% discount rate of £57.3million (US$91.6million).
Case C, at 30,000 ozs/year, gives total Mine Life revenue of £71.3million after deduction of capital and operating costs, IRR of 54% and NPV at 5% discount rate of £51.2million (US$82.0million).
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