Loading ...Richmont Mines Island Deep Gold PEA
Richmont has been a hot name thrown around here. I wanted to point out just how transformational their planned Island Deep expansion is. These numbers are taken from their technical report filed on SEDAR this week. Currently their cast costs for the last 9 months are 763$ US and AISC are 1024$ US. When they did the reserve report on the mine as of Dec 2014, they were using 1.08 Canadian as the exchange rate in their assumptions. I’m not sure if that is the number they are still using for the technical report filed last week, but the Loonie recently hit 1.40. This company has EXTREME leverage to the Canadian currency. This Island gold Expansion is a potential million ounce mine and will produce 80,000 ounces per year at potentially sub 500$ cash costs.
Financial 2017 2018 2019 2020 2021 2022
|
Opex total costs (C$) |
$45,968,845 |
$41,572,861 |
$44,300,512 |
$45,752,730 |
$43,249,683 |
$35,392,239 |
|
Mining |
$23,974,796 |
$19,305,202 |
$20,713,363 |
$21,916,669 |
$20,158,889 |
$17,829,525 |
|
Milling |
$9,365,538 |
$8,781,708 |
$9,195,760 |
$9,577,302 |
$9,396,919 |
$8,743,583 |
|
G&A |
$9,307,172 |
$9,837,560 |
$9,950,787 |
$10,055,196 |
$9,827,134 |
$6,000,000 |
|
Royalties at 3% avg |
$3,321,339 |
$3,648,391 |
$4,440,602 |
$4,203,563 |
$3,866,742 |
$2,819,131 |
|
Cash operating cost ($/t) |
$155 |
$154 |
$153 |
$149 |
$145 |
$132 |
|
Cash costs ($/oz) |
$664 |
$547 |
$479 |
$522 |
$537 |
$603 |
Great information. Adds confidence to making trade in a company.
Have you heard of Miranda gold?
Had a bit of MAD.v when I was still trading at PennTrade and seeing the PM sector as still bullish.
Didn’t do much trading off the Canadian exchanges, but did OK.
Got out before the ’08 dump and really haven’t looked seriously at anything over there.
Since then, with the launch of GLDX and GDXJ and the leveraged versions, I’ve switched over from picking to timing, and then I triple up.
My sense is that JNUG will outperform most of the outperformers if you trade it. At some point, holding may pay off but even in good times there are 30-40% wipeouts like in spring of 2004. And then I’d rather be in something like ZJG.to or something with a broader portfolio. Perhaps a Sprott vehicle.
Miranda Gold is a total dog. Its the worst stock from the prospect generator group which is overhyped and a disaster for retail shareholders. The guys who push this stuff like Rick Rule finance these companies and get warrants which add tremendous leverage to their gains. So if 1 out of 10 works out it can be a 100 bagger for them.
Sorry. I haven’t done any work on them.
Great info Cashcosts. RIC is one of my longer term holdings I started accumulating this year only because I like the chart. It will be interesting to see how things develop.
Cash .. do you have any insights into GSV ?? .. its been defying gravity and peer pressure for the last few months. Making a solid move.
I would NOT be a buyer here, but if its not spending its wad right now, I’d be looking for it to be among the leaders when the group reverses north.
They obviously have something or are on the verge of something in Nevada… OceanaGold would not have bought 14 percent of the company if these guys were jokers. This is probably the most telling aspect of the potential. The technical team also appears to have worked in Nevada with Newmont. I can’t say anything more (I’m not sure anyone who isn’t intimately involved with company can).
Ownership* % Insider and associates 13 Institutional ownership 50 FCMI 17.5 Oceana Gold corporation 14.9 American Century 5
FCMI is Albert Friedberg.
On the technical team – Mr. Mathewson was head Geologist with Tone Resources (TNS TSX.V), a publicly traded Nevada based junior gold exploration company which was acquired by Rob McEwen & US Gold (USGL) in 2007. Any time there is some degree of McEwen involved, even if it is 6 degrees away, it is worth looking deeper. I would throw some on the books for a flyer.