Member Info for mogwhy

Thanks for the reply Devil, which has shown you up for what you are.

K3VMC - what is the 200tpm . Is it concentrate or WO3 ?

bollo - the main difference in opex is the strip ratio.
Wres is 1.35:1 and Orm is 6.35:1

One point to note is that Wres opex includes tin credits of $16/mtu

Troaj - oldie posted earlier that this is just a bit of fun for him.
I think we're taking it a bit more seriously than he is.
Excellent risk/reward ratio here for those who understand imo.

oldie - you haven't understood my original post.
80% is the amount of tungsten in the WO3 - fact.
The amount we get paid depends on the concentrate percentage, which is currently lower
than design because we are processing the tailings.

oldie - I've used the current APT price and the projected output for T2.
Put in what ever figures you want.
MM has stated that we will be selling at the 80% of the APT price with no discount.

For serious WRES investors, there seems to be a great lack of
knowledge of what we are actually going to produce !

The La Parrilla T2 phase will produce 2,700 mtpa of tungsten concentrate 66% WO3.
2,700 at 66% = 1,780 metric tonnes of WO3 = 178,000 mtu.

APT is priced in $/MTU (metric ton unit)
1 mtu of APT contains 10 kgs of WO3.
Atomic weights: W = 184, O3 = 48, WO3 = 232
W contained = 184/232 = 79.31%.
79.31% of 10 kgs = 7.931 kgs W.

So, we get approx 80% of the APT price for our product.
178,000 x 0.8 x $260 APT = $37,000,000 revenue plus the tin.

The tailings concentrate is only about 60% WO3, probably less,
hence the lower current revenue.

Hope that helps !

Ponfeigh - the 10m trade was off-book,
so it was probably a transfer of some sort.

MM has promised a gold update in Q1, so within the next 4 weeks.
He's been quoted as expecting at 4-500,000 oz.

Forward selling would be done by insiders who know that a discounted placing is coming.
AIM is rife with this behaviour.
I'm not saying that a placing is coming, but given MM's past history .......

One of the biggest spreadbetter platforms, IG, are not allowing shorts on BMN.

SGZ have already got a mine which they didn't pay full price for.
We're starting from scratch.

One of the main reasons for the increase in the cost of gold mining over
the last couple of decades is because all of the easy to find and cheap to mine deposits
near surface have been extracted.
Sao Martinho is near surface so I have high hopes that it will be in the right
part of the cost curve to make it a profitable mining operation.
Can't wait to see a DFS to put some numbers on it.

I think most of us would be disappointed if any drilling couldn't
be funded from La Parrilla free cash flow.
At a minimum we'll need to infill drill and MM won't be able
to resist some exploratory holes.

If we get to 500,000 oz of gold, that could be a very nice earner.
If we assume AISC of $1,000 and a gold price of $1,300
that gives $15m pre tax profit per year at 50,000 oz a year for 10 years.
Yum, yum.

http://tinyurl.com/y3rzzk29

It might be of interest to holders here that Turner Pope have done a comparison between
Ormonde and W Resources.
In short, their conclusion was that ORM is trading at a multiple of 4 times that of WRES.
They are not saying that ORM is overvalued or that WRES is undervalued, but there
is a clear arbitrage situation.

http://tinyurl.com/y3vpv6ej

Northman1 - although Regua will start at 500 tpa output, it will be
ramped up to 1,300 tpa average over the mine life.
The Regua FID later this year will give us more clarity.

GIT - $94 /mtu is not the total cost of production. It includes a tin credit.
See page 18 of the TPI report. Actual opex is $94 + $16 = $110.
I don't like seeing the opex calculated this way as I would prefer to work out the
tin income seperately to take into account the current tin price.

http://tinyurl.com/y6ba7kpz

GIT - the tin is included in the $94 /mtu costs, so no extra income there
unless the tin price rises above the projected price.