Thanks for your helpful information. Which report was it derived from by the way ? So you are indicating that the estimated tonnage per day is not based on mill capacity but number of hours worked, and they expect 350 days per year i.e. thus including weekends ? Did they release estimates of downtime for mill repairs during a typical year ? Would addining second shifts and working weekends increase their operating costs per ton ?
Do they indicate how they will be paid for product ?
As far as not knowing or wanting to release the CAPEX estimates from a PR standpoint I would think that if they are marketing this as a pre-production play, estimating the CAPEX and forecast internal rates of return say in a preliminary assessment or scoping study or even pre-feasibility study would help attract more investors. Is it unreasonable for investors to have a rough idea of capital required to go into production ? Or if management still believes production can start in August 2013 ?
Looking at the 10k seems still a few steps left in the permitting process.
A corporate update giving rough capital costs, revised production commencment date, and announcing a scoping study on forecast capex and operating costs would go a long way to building investor confidence. It would not be surprizing if production doesnt start in 2013 - on other hand, if management still holds to that date, and considering their cash needs- why not build investor support now to help finance the company ?
