Replies to post #31463 on ((RAIN)) Rainmakers-Island

[The Rainmaker]

First you should learn the difference between Shares O/S and the float, that might help you understand how pennies work.

[The Rainmaker]

The value underlying those shares.....Austinvball Share Friday, April 08, 2011 3:39:45 AM
Re: None Post # of 19961

SNEY Daily Production Value

So there has been some debate on income estimates for Sunergy. Figured I would post one with all the work and assumptions shown.

********Assumptions and Constants(this is where the opinion comes in)***********

Metric Ton = 2000 lbs.
Gold vol. = 1 g/ton
Black Sand vol. = 100 lb/ton
Gold Value = $1400/oz.
BS Value = $6000/ton <---(conservative)

Daily Material Volume = 1800 tons/day

1 oz. = 31.1 g

Operating days in the year = 230
Current OS = 1.3b (accounting for Allied acquisition)

***************Daily Volume of Gold*****************

1g/ton * 1800tons/day = 1800g/day of gold.

(1800g/day) * (1 oz/31.1 g) = 57.88 oz. of gold per day

57.88g/day * $1400 = $81,032 gold value per day

**************Daily Volume of Black Sand************

100lb/ton * 1800ton/day = 180,000 lb. Black Sand recovered per day

180,000 / 2000 = 90 metric tons of Black Sand per day.

90ton/day * $6000/ton = $540,000 Black Sand value per day
**************Totals*******************

540,000 + 81,032 = $621,032 daily production value.

Daily Value times 230 operating days in a year = $142,837,360 /year
Divide by Current OS to get estimated share price = $0.1099 PPS




Again, keep in mind this is a conservative estimate. I used far less for REE valuation than what the company predicts...And it is possible that the companys predictions will be blown out of the water due to the current REE Market. Also, there will probably be more than 230 operating days per year but again, I like the more conservative estimates.

If you think one of the constants or assumptions is wrong to could be more accurate please let me know.