Interesting info from yesterday's edition of John Doody's Gold Stock Analyst.
"Once a worthwhile deposit has been discovered, mining stocks trace a consistent pattern. Good news drives the price higher during the early
years. Those stocks with a bona fide deposit then begin a period of studies and permitting. The flow of news is low – there’s not much action to
keep investors interested. Plus, this stage also involves a lot of financing. Often, the companies issue new shares to raise cash, diluting original shareholders. But once enough money is raised, new potential investors can see how big the “pie” is and how much each slice represents."
I think that Mexus is at that second point.
The second quote is his definition:
"commercial production – when the mine is generating positive cash flow and can stand alone without outside financing"
Mexus has been borrowing $50K or less to complete the new (and expanded) pad, perfect the carbon capture process, etc., and cover the overhead. $50000/30 days/3oz au equiv = $555.56 all in cost per ounce. Assuming only $1775/oz, that means $1219 per day or $36,583 gross profit per month. That's just about the actual net proceeds of each loan if you subtract all the fees and interest.
The expanded pad should begin adding to the daily production rate sometime this month, roughly doubling gross profits by October or November at the latest.
So, break-even in September, cash flow positive in October, and enough extra cash to set up the ball mill and gravity separation line for the high-grade quartz or whatever Paul thinks is the best expansion step next. We've won the battle. Success is not just around the corner. It's here.
That's the way I see it.
Dino
