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Message: Let's dream a bit

Let's dream a bit

posted on Feb 16, 2010 12:13PM

Here are some fairly conservative numbers to dream about a little.

-Let's say our mill can process 500 tonnes/day of ore, and our average grade is 0.25Oz/tonne.

-Let's say the mill runs 300 days a year. So 250*500 = 150,000 tonnes of ore, or 37,500 Oz of gold produced per year.

-Let's pretend we can average a profit of $500/Oz

-37,500 Oz * $500/Oz is $18,750,000/yr

Now lets pretend the company paid these profits out as dividends. That would be an average of $0.015 per month, or $0.1875/yr.

With the current share price of $0.66, that works out to be about a 28% dividend. Most dividends on 'riskier' stocks are around 5-10%. Imagine if GRC announced they planned to be paying out $0.18/yr per share for the next XX years. If the share price corrected so dividend yield is 7.5% that would indicate a share price of $2.50.

Just dreaming a bit.

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