United Resource Holdings Group, Inc. (URHG)

[themtharhills]

At the last shareholders meeting they said the monthly "burn rate" would be about $80,000, which included an operating United Milling, an operating Dun Glen, and URHG corporate costs. This was for labor, salaries, paying back loans, equipment, etc etc. That would be $960,000 a year, or I'd call it roughly a million dollars.

If gold were sold for $1000/ounce then it would take about 1000 ounces produced a year to break even. I think the weather allows them to mine at least 40 weeks a year. If my math is right, then Dun Glen would need to average 25 ounces a week for 40 weeks (operating 5 days a week and averaging 5 ounces a day) for URHG to break even.

If Dun Glen made more than that, or if United Milling contributed some profit, then that money would go into the URHG profit column.

In one of the recent Facebook videos they said they had produced 1.1 ounces in an hour of running the circuit. We are now waiting for them to get the circuit running consistently for 40 hours to learn if that 1.1 ounces result was an outlier, if the circuit can operate for a full workweek, and what an average weekly recovery rate might be at Dun Glen.


- TTH