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The biggest single mine I could find was Freeport McMoran did 255,000 tons a day peak in December 2001 at the Grasberg mine in Papua.
"Grasberg mining and milling complex operated at record-setting levels during 2001, posting annual records for average daily mill throughput, gold recovery rates and gold production. In addition, we are reporting our lowest-ever annual net cash production costs, including gold and silver credits, of $0.07 per pound of copper for 2001.
Annual operating records:
237,800 metric tons of ore throughput per day (monthly record: 255,200 metric tons per day for December 2001);
89.5 percent gold recovery rate (quarterly record: 91.6 percent for the fourth quarter of 2001);
3.5 million ounces aggregate gold production."
http://www.fcx.com/aboutus/briefhis.htm
I went to a working gold mine in CA almost on the Nevada border. They were processing 1000 tons a day. They had 3 heavy trucks, a crusher operator, leach pad operator, and smelter crew + ops manager. Total employees on site was 8.
With heavy equipment, AURC should be able to process a few thousand tons a day at Krong with about 15 - 20 people imo.
Read the article again and do the math. They are producing 330,000 troy oz per year at a grade of 1 gram per ton. There are 31.1 grams per troy ounce. Therefore they are processing 31.1 x 330,000 = 10,263,000 tons per year.
Divided by 365 days = 28,118 tons per day average of actual processing to the finished product of gold per day. 904 troy ounces of gold per day.
Ibreken, 15,000 tons a day is not that much with modern trucks and equipment. Today's mining trucks hold 300 tons per trip.
Here is a traditional heap leach operation that processes 2890 tons per HOUR, 69,360 tons per day.
http://host.asla.org/groups/rrpigroup/cripplecreek1b.pdf
2C, good DD. I'm getting "oldtimers" disease, and only remember the last person that said it, lol.
This discussion of 80,000 vs 80 million tons is very annoying. When looking at the total ounces/grams per ton/projected revenues...it is OBVIOUS that 80 million tons is the correct figure as stated in the most RECENT PR.
Vic
LEN, I agree that POS2007 is a BAD name, lol. I like POL because it aligns with PSL. And even though it is missing an "L", we POLLED the members for their faves of 2007.
Regardless of the final name, it is a brilliant idea that will breathe new life into the DD board imho.
Vic
No. The website needs to be updated. Shares were issued to pay for heavy processing equipment.
That equipment will produce a cash stream that can be used for future cash dividends and possibly future buyback/retirement of shares.
Vic
Don't worry Pugdog. It's not a scam. Russia biz is very hard to understand for most folks. When it becomes clear the pps will be many multiples of where it sits now.
The greatest bargains are always had during times of public confusion.
Vic
It says how current it is right in the Ibox:
Share Structure
Updated with company directly:
--Outstanding: 134.8 Mil
(Updated as of 12-20-2006 Via I/R Confirmation from AurusCorp)
POL2007...Pick One Lotto 2007
I think that's why AURC recent PR's say 5+ mil ounces in gold reserves and not 7+ mil like they would have WITH Klyon.
But HEY...5+ million ounces of gold mostly above ground AND Platinum etc easily processed...ya just gotta love it imo.
Vic
ERGO Def Proxy out. Still 2.10 for 199 shares. Still have to order out the cert. No street name allowed.
http://www.sec.gov/Archives/edgar/data/1158846/000118811206003826/t12616_def14a.htm
Supports Party's theory that Klyon was traded for Krong. A theory that I agree with.
Vic
kcjones, thank you for the input from Stockhouse BB. Sounds good.
Vic
I agree. Warrants issued are usually 50% of the common that was issued. ie: Issue 1.5 million common @ 1.00 and 750,000 warrants exercisable at 1.50 for 2 years is pretty standard in this type of offering.
Bottom line: Anything below 1.00 is a bargain imho.
Vic
test
Looking pretty attractive here. Sector meltdown today hitting a lot of stocks creating some bargains.
AP
Oil and Gas Stocks Fall on Downgrade
Wednesday January 3, 12:31 pm ET
Oil and Gas Stocks Fall on Downgrade, Reduced Oil Prices
NEW YORK (AP) -- Shares of numerous independent oil and gas producers dropped Wednesday after oil prices fell and analysts at KeyBanc Capital Markets downgraded 10 companies in the sector.
Oil prices dropped below $59 a barrel on the first trading day of 2007 as mild winter weather reduced demand for heating oil and natural gas. Light, sweet crude for February delivery on the New York Mercantile Exchange fell $2.27 to $58.78 a barrel in midday trading.
Meanwhile, analysts at KeyBanc said in an industry note that "natural gas prices will remain under pressure" and that inventory levels were likely to remain high through the winter.
As a result, KeyBanc downgraded 10 oil and gas companies from "BUY" to "HOLD": Carrizo Oil & Gas Inc., Delta Petroleum Corp., Denbury Resources Inc., Encore Acquisition Co., Exco Resources Inc., The Houston Exploration Co., Newfield Exploration Co., St. Mary Land & Exploration Co., Whiting Petroleum Corp. and XTO Energy Inc.
The firm also downgraded three companies from "AGGRESSIVE BUY" to "BUY": Cabot Oil & Gas Corp., Range Resources Corp. and Superior Well Services Inc.
Shares of Carrizo fell $1.74, or 6 percent, to $27.28 in midday trading on the Nasdaq Stock Market, while Newfield Exploration shares dropped $2.95, or 6.4 percent, to $43 on the New York Stock Exchange.
XTO Energy shares plummeted $2.35, or 5 percent, to $44.70 on the NYSE, while shares of Exco Resources fell 77 cents, or 4.6 percent, to $16.14 on the NYSE.
Benz, thanks. Just got in from extended weekend and trying to catch up here.
GL to all and a healthy, happy, prosperous 2007 is my wish for all.
Vic
The 108,000 BOE is NET to FPP, taking the 43% in account. This is higher than most of their deals where they avg 27% NRI in 342 wells.
The cost is fairly attractive at 15.46 per BOE. Since this looks like more gas than oil it could also be calculated at 648,000 Mcf acquired for 2.58 per Mcf.
At 100 Mcf/day production, it won't add much to revenues. Only about $63,000 per qtr @ $7 per Mcf. I think further development is planned to boost production.
2006 production for FPP will be about 70,000 BOE. Therefore this acquisition will boost 2006 yearend reserves 38,000 BOE higher than 2005 yearend reserves. PV10 will likely rise, depending on oil/gas pricing at 12/31/06. Oil above 56.92 bbl will do the trick.
All and all a very conservative acquisition with a long reserve life.
Vic
I can't see them either. Just 4 little boxes with a red x in each one. Maybe new 2007 charts need to be loaded?
Jagman, I agree. Stock is very thin so mums the word for now.(jk).
They are also producing quite a bit from the Austin Chalk in TX., and imply they haven't done horizontal drilling there yet.
I have seen with TMR where HD can triple production. But it costs 3 mil per HD. If successful payback is within 4 months and pure profit after that. But depletion is very rapid...(after 12 months it's a trickle.) Huge cash flow up front though.
Funny thing that TMR is in the Palo Duran basin also. Maybe they know something?
GL to you,
Vic
I took a look at the filings for FPP as per a friends request. Here is my summary:
PV10 is 17 mil or about 1.93 per share. Pretax PV10 is 34 mil or about 3.86 per share. That is based on oil @ 56.92 Bbl and natgas @ 6.66 Mcf.
Proved reserves at 12/31/05 were 1,285,924 BOE. About 76% oil and 24% natgas. (a big +) They are 100% Unhedged, which will make them volatile to oil prices.
Production for 2006 will be about 70,000 BOE, implying a reserve life of over 18 years at current production rates.
Production has been showing a steady but shallow decline rate in the past year. They drilled 2 wells in 2005 and none in 2006.
Recent 50 million line of credit with Citibank indicates a near term acquisition or drilling program is imminent. They acquired 3235 acres in the Palo Duran basin 3/30/05 that needs exploitation.
Balance sheet is currently 2 mil cash and no debt. O/S is 8.7 million shares. Insiders own 3.7 mil leaving 5.0 mil in the float.
Operating cash flow is about 500k per qtr/ 2mil per year and Shareholder Equity increases at the same rate. 7.6 mil now vs 6.1 mil at 12/31/05. Projected to be 8.1 mil 12/31/06.
EPS this year will be .19...giving a PE of about 11 or 12 at current levels.
I would put a current value of about 2.85 on it. If they start drilling or acquire producing pptys, it could go up pretty fast imho.
A definite buy and hold at the 2 area imo.
GL,
Vic
Shorts, You're right, foreigners are not allowed to make the lions share of resources in Russia. Lucky for us we are minority shareholders here. The Lion's share of 83 million shares is owned by Russians. We're just along for the ride while they make themselves rich(er).
That's why a stock/cash divy make sense here. While their shares are restricted, their entitlement to a dividend is not. They are granting themselves more shares and then cash that they can use right away on their increased holdings.
No need to wait another year to start profiting from their holdings.
Heartbeat, it's been my experience that any kind of divy, stock or otherwise, causes a rise in the pps at some point before the ex-date.
2 recent ones that I follow were ISCR and XLPI. ISCR declared a 8% stk div in may and the pps went from .25 to .50. It subsequently settled in the .35 range after the ex date.
XLPI announced a 1% subsidiary divy in march and pps went from .013 to .045 then setlled back to .015. Then they anncd a 5% stk div in may and the pps went from .015 to .025.
Naked shorts just don't want the hassle of owing shares that don't exist to begin with. Better to cover and reshort after the ex date.
What's different about AURC, is the plan to pay a cash div after the stock div. I can promise you a dramatic upside move at some point because of that.
Vic
Brent, you're welcome. Tax selling has created a great oppty here imho.
GL to all,
Vic
Just got back from Vegas where I contributed to the electric bill, lol. It took a long time to read all of the posts here. I would have deleted a hundred or so that were personal in nature and were a waste of time to read.
The updated O/S of 134 mil jives with my email answer of "about 131 mil" that I rec'd from the co. a month ago as an answer to my inquiry. 2C has a copy of the email and can verify.
The 10% stock dividend should cause a lot of the shorts to cover by ex-date of around 1/26/07. In that respect it is a brilliant move. That should cause a test of .25 by that date.
The cash dividend that will be announced after that is going to be a shock to any remaining shorts and skeptical longs and will likely propel the pps to new 52 week highs. My guess is around .75 near term. I'm keeping a lot of powder dry to buy at >.25 on the breakout. S/R knows this to be true from our correspondence.
Currently bidding .105 and under for size. That will rise as the ex-date approaches.
GL to all,
Vic
The SEL.V is a modest investment of 2.6 mil canadian. About 2.26 mil USD.
2.6 million units @ 1.00 CAD each. 1.3 million wts exer @ 1.15 CAD for 2 years (exp. 12/18/08)
Just like the 11.9 million shares of LSE/ AIM listed GED that HEC owns, it is very simple to track the value of these investments and apply it to HEC's overall value.
With HEC trading near book value, this is a very safe investment with low downside. Lots of cash and no debt.
However, the upside seems to be limited to the .75/.90 area for the forseeable future unless A) GED has a tremendous runup to it's previous highs of 350 pence from current 120 pence level. B) Dramatic positive test results are reported from Indiana CBM project or C) Current production can be pushed above 10 MMcfe/d. (About 9 MMcfe/d right now...60% gas and 40% oil).
I'm looking to load up at .45/.46 level if .49 52 week low is touched and causes stop sell weakness. I'll pay closer to .50/.51 by month end if need be.
Vic
You're miles ahead of me already. Keep up the good work.
Brent, you're getting pretty handy at the charts. Nice job!
You show a 3 day RSI...Any way to default it to 14 day? Just a suggestion.
Thanks,
Vic
Literally. Also check latest news releases on AURC. Huge earnings and dividends are about to commence.
Read the release again. Towards the end it states they are going to build a plant to increase to 100 c/y/h.
"Based on an assessment of all available information, Senior Mining Consultant Norm Pearson has concluded the following earnings projections are possible at just 100 yards of ore processing per hour. This projection has led to his recommendation for Drake Gold to expand to a larger plant. The following estimate includes the increased costs related to the expansion of operations to a 100 c/y/h plant. The cost and projection explanation and available information will be posted on the website: http://www.drakegold.com/default.asp?Page=OperationsJackpotProjections"
Thanks. Just about to hit the hey when I did my last MB check.
Have a good night,
Vic
Aurc on 4/21 closed at .37. 4/24 at .36. 5/9/06 at .37. So much for that theory.
Vic
KIK, I bought POGS today also @ 1.50. I've been bidding 1.25 gtc forever it seems on this little pinky. It took months to get 2350 shares. I bought 1650 today to round up to 4k shares. Bidding 1.40 gtc now for more after seeing today's report. Hard to buy it is so thin. They went pink to escape sar-box costs but are definitely undervalued. Kind of like the Tara gold of Utah, lol.
Vic
Lunch time swoon over. Time to move up again.
Stluc, P1 = Proven reserves which have 90% certainty of being there. P2 = Probable reserves which have 50% certainty of being there. P3 = Possible reserves which have 10% certainty of being there.
Vic
"...we welcome investors, who are purchasing the shares and we promise they stay satisfied with this acquisition."
A little stronger wording than the website.
Glad I bought a ton yesterday,
Vic