Mexus Gold US (MXSG)

[T-Hawk]

I had a little windshield time this weekend and was noodling on Mexus and if I should try to get back in for a quick play here. Then I got to thinking about the Sipi 97%/3% split. As I think on it more, I have my doubts about this sustainability of this relationship.

Giving Mexus the benefit of the doubt and assuming all favorable assumptions, based on the 1st shipment, 76.5 troy oz of gold were sold to a buyer. Assume it was sold at full spot price of $1,739 oz that would mean Sipi was paid just under $4,000 to process 1 ton of material.

Admittedly I have very little knowledge of Sipi's refining process. However, $4,000 seems extremely low for processing that much material. Labor cost alone would easily eat up 1/4 of that amount (and that's at what I feel is a very conservative estimate of 40 hours labor at $25.00/hr).

Pure speculation on my part, but my gut tells me something is off here.