Replies to post #13237 on Value Microcaps Junior Miners

[cl001]

Re: AGT,
Well, you can't use LOM cost here because it includes both open pit and underground. In addition, it was based on 100 oil and 1:1 Canadian.
The Open pit cost is at low 300 range. The initial 9 months they are running higher grade. The cost is about 250-275 according to the presentation. Check it out yourself. You see the margin can be 600+, I am trying to be conservative here.
The difference between AGT and many other juniors is that they are very experience miners and already have a good team at MT, which is much larger operation. The mill was treating BF ore before so they have confidence to sent high grade ore from day one. Many juniors were treating low grade ore first so the initial cost is much higher.
Anyway, I think if they can deliver 27K oz in the first two months, we should see 1 dollar this summer as long as gold is stable.