No, I was right in they found recoverable amounts if gold in 22% of the samples in the PR. Other drill results that they may have do not figure into it. Actually, I see I made a mistake and add in the numbers from the last row of table 1. Removing those numbers lowers the percentage to 20%.
The length, width and depth calculations were yours.
The ratio of silver to gold is an average and not a mean.
5M tons x 22% with recoverable gold * .058 average grade * 80% recovery rate = 51040 ounces of gold. Why bother adding it to the 3,250,000 ounces that they already claim. It is not worth changing the PR template.
There were 89 drill holes with an average depth of 100 feet which is 8900 feet or 890 ten foot intercepts.
Table 1 of the PR give the number of intercepts with greater than .015 AU opt. Adding up these intercepts and assuming no overlap in the numbers gives 196 intercepts or 22% of total 890 intercepts.
That means 78% of the 5M tons is plain dirt.
That cuts the $240M down to $42M, Assume production costs of 50% (750 is approximately 50% of 1200) brings the $42M down to $24M.
Not at all. They are both true.The company has no reserves but it does have resources. The difference is for a resource to become a reserve you have to have a preliminary economic assessment report showing how much of those resources and be profitably mined. Then they become reserves.
Now ask yourself, why does the company not have any reserves?
Couple of things going on here. A lot, if not most, of the investors don't know the difference between reserves and resources. The company feeds into this ignorance with statements like
"validating qualified resources (measured and indicated) and reserves (proven and probable) of at least 3,250,000 gold equivalent ounces from our first two resource areas"
So while the company does not have any reserves, it does have resources. The statement is not factually incorrect just highly misleading.
Gold in the ground does not provide cash to keep the company running. You have to mine it to make money.
The down side of the Auramet financing is they have to pay it back. The question is if they borrow the funds will they be able to put it to good enough use that they can earn enough cash to cover the payments. Otherwise it will just eat away at their cash on hand.
But shareholder value did increase by 300%. The stock price was $1.25. They diluted the stock float by a factor of 5. The stock price should have decreased by a like amount to .25 but is currently at .83 which is 300% greater.
18.7M x 1.25 = 23.5M
89.7M x .82 = 73.6M
Isn't that great. In less than 5 years they have tripled the value of the company.
From the NASDAQ site:
SOLUS ALTERNATIVE ASSET MANAGEMENT LP 09/30/2014 304,525 (3,338,626) (91.64) 268
FINANCIAL & INVESTMENT MANAGEMENT GROUP LTD 12/31/2014 0 (675,164) Sold Out
Not quite all holding. And yeah I know the first one is from 09/30 but not everyone has reported for 12/31.
Can you explain how FIFO and FILO accounting methods affect inventory levels in gold mining? I am especially interest in how the FILO method works.
They poured 20K Gold Equivalent Ounces (GEO) but the produced 17K gold ounces.The 3K difference is the silver ounces that are considered a by product and used as a credit against production costs.
Actually, the numbers for 2014 were "22,925 gold equivalent ounces" with "19,601 ounces of gold and 222,416 ounces of silver in 2014"
The "38,000 ounces pa" is actually a projected annualized rate of 36K GEO based upon their best production rate in December 2014. Obviously this can change due to multiple factors,
An easement gives the state the legal right to use and access that land. It can not be arbitrarily cancelled by CMI. It can only be terminated under certain conditions such as mutual agreement with the state, abandonment (no one uses the road anymore) or the road no longer serves the public interest. Except for the first condition, CMI would have to go to court to be released from the easement.
Until they get these mines up and humming there is a year to 2 years of losses and possible dilution. A better strategy would be to put your money in invests that have better short term returns while monitoring LODE. I know someone will chime in that you might miss the start of any gains but I advocated this approach back when lode was trading in the 2.60's so if you had followed it then you would have missed the 50% drop,