Re: Then again ...Stock Price
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Welcome to the San Gold HUB on AGORACOM
San Gold Corporation - one of Canada's most exciting new exploration companies and gold producers.
Message: Re: Then again ...Stock Price
...knowing the sector that one invest in can help to ease the pain..San has created alot of buy and sell opportunities for the traders here as we heard here over the yrs. San"s image of not meeting targets is one that strickly belongs onto management. The mining plan took a change from what was laid out (
Further, Howe is of the opinion that the operating costs used in the economic analysis in this Report are conservatively high as they are based on the historic operating costs of the Rice Lake Mine, which is a deep, shaft and internal shaft accessed operation. The San Gold #1 Mine, for at least the next ten years, will be a ramp accessed, relatively shallow (less than 1,000 feet below surface) operation. The same will apply to the Cartwright and San Gold #2-3 zones. By the end of 2007 after a full year of operations, the Company will be able to better quantify their overall operating costs and then apply that information to a reassessment of their resource and reserve economics. Howe concludes that by year-end 2007 the project economics will have been significantly improved by overall reduction in project operating costs compared to the operating cost assumptions used in this Report.
SUMMARY OF KEY ECONOMIC RESULTS (Canadian dollars unless indicated otherwise) Reserves Only Reserves plus Resources Life of Mine (“LOM”) 5 Minimum 10 years LOM Tons Mined 1,286,600 3,945,600 LOM Ounces Gold Produced 315,200 927,360 LOM Average Assumed Gold Price US$ 600 US$ 600 LOM Average Breakeven Gold Price US$ 353 US$ 377 Total Revenue $217,015,200 $638,487,400 Total Operating Costs $112,342,500 $344,526,400 Operating Revenue $104,672,700 $293,961,000 Capital Costs $ 14,996,500 $ 55,995,900 EBITDA $ 89,676,200 $237,965,100 Estimated Taxes $ 27,235,400 $ 88,266,000 Cash Surplus after tax $ 62,440,800 $149,699,100 Howe concludes that this is a mature mining property that still has significant potential and warrants an intensive program of ongoing exploration and development. Howe concludes that no additional surface drilling is required at Cartwright to justify beginning an underground program to initiate underground delineation of the resources and to establish proven and probable reserves. The Company has identified a location to collar the ramp opening, which would be within 500 feet of the Rice Lake Mill and once in operation would mean that ore could be delivered directly to the mill via the proposed ramp. As with all mining projects, there are inherent economic risks due to factors beyond the control of the Company, gold prices and dollar exchange rates being the most critical. In Howe’s opinion gold prices are unlikely to establish new.................CONTINUE ..
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