CMC Metals Ltd. (CMCXF)

[BMGS]

Income calculations revisited and wildcards
Production is going to start soon. Below are the calculations and some additional points which might have a positive impact on the earnings.

"Once in full production in June, we expect to process 3,000 tons a month with an average grade of 0.50 OPT. We expect our cost to be $600 - $800 an ounce. If we produce 1500 ounces a month and our interest is 50% of the Radcliff mine, our profit could be anywhere from $300k to $450k a month with $1200 gold." (see post http://investorshub.advfn.com/boards/read_msg.aspx?message_id=97146208)

Calculation with a gold price of $1300 would result in a profit of $375k to $525k per month. The annual profit is then between $4.5 and $6.3 million.

Wildcards
1. A higher gold price. A $100 higher gold price results in 900k higher income per year. A higher gold price will at one point certainly raise interest in profitable and promising junior mining companies.
2. “If they can locate some of the higher-grade ore, the one-ounce material that they know is there, the numbers get even more attractive." (see the following report: http://www.321gold.com/editorials/moriarty/moriarty033114.html) This would double the income as current calculations are based on 0.50 OPT.
3. "We are transporting a crushing plant to Balarat to allow us to pre-crush ore before shipping it to the Bishop Mill. This will allow us to remove part of the crushing plant at Bishop and install more grinding capacity to the mill." (see post: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=104211408) This will raise the daily production of currently 100 tpd and therefore the amount of gold to be recovered. The question will be how much...
4. Silver Hart property. Here, the income from the Radcliff mine and the Bishop Mill can be used to make further progress. In the following is a report from the year 2009. According to the report the extraction costs area at a comfortable $4.45/oz.
http://www.preciousmetalsreview.com/PMRcmbbond.pdf