Replies to post #18071 on Sunergy, Inc. (fka SNEY)

[mikeymgd]

I believe those estimates are way too high.

There have been updates since that post to show those numbers are well beyond reality. At the time Stevec might have believed that but with updated info we know it has changed.

"the operations will be (2) six hour shifts for a total of 12 hours run time per dredge...the gold production rate is based on a minimum of 1 gram of gold per ton of material..."

Based on this then we can guess 50/tons per hour per dredge.

150/tons per hour or 450 grams per hour. Lets give them a 6 day work week so 12hx6dx450g=32400 grams a week.

"Gold is measured in troy ounces. One troy ounce is exactly 31.1034768 grams. This makes the troy ounce larger than the avoirdupois ounce, which has a mass of 28.35 grams. A link is provided to the Wikipedia article on the gold gram, and the conversion factors can be reviewed there."

32400/34.103=950 troy ounces a week.

Say they average 45 weeks of production. Weather conditions play a huge part in production.

45 x 950 = 42750

We should expect production to produce about 42750 ounces a year. Of course this is based on 3 dredges. I would not expect an expansion till the end of the current year so leaving it at 3 right now is best.

Now based on troy weights a pound is 12 troy ounces so we get 3562 pounds per year of gold.

This also does not include the unknown variables of other metals and diamonds. Its best to consider them gravy rather then add them in.

Personally I expect a little less since its safer to reduce expectations on mining companies. In the end we should expect about 4200 ounces a year or 60m in production of gold. Even if we double that to allow for REE's, we get 120m. At 1 dollar the company is worth 1.3b. I cannot imagine why they would trade at 10x sales. 10-20 cents may be a better target until we see something to prove they could exceed expected production.

Also remember that junior mining companies don't usually exceed the assay reports. Most of the time it takes years before they reach full production on expectations.

Please correct me if this seems wrong. I am always a conservative player so many could expect us to far exceed expectations but this post could even be way too high.