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Message: Information for thought.

Information for thought.

posted on Aug 24, 2009 04:13PM

After reading the latest Edgar filing by Tara Minerals, I have taken a stab at extrapolating potential revenues from the Don Ramon production/
First caveats- all calculations are subject to the spot prices of the minerals being produced. Thus the spot prices of copper, Zink, lead, silver and gold and all other minerals in the production will affect the net return of revenue. I am using conservative [under present spot prices] in my calculations-which hopefully will underestimate my final results. As well I am only including the Don Ramón group of ore body’s production. Tara minerals have multiple other potential mineral ore bodies that hopefully will contribute both to the production possible and to the life of the area.
As well we know there is a major gold property on the other side of the river that is not being used in production projections although a new gold body near the Don Ramon mill IS available.
Then there is always Murphy’s Law that can have stoppage in production.
My calculations are based on 3 lines of separation after crushing as delineated in the Edgar filing. Right now they apparently have 2 lines in operation with the third due in a month or so. Again I am basing production on having 9 production crews [i.e. 24 hours a day production from the 3 lines] for 25 days a month. The 25 days are based on down time to clean and refresh the equipment and employee holiday time.
There are surely other matters that can effect production but apparently the demand for the final product is NOT of concern as Chinese interests are interested in all production available.
The initial months, of course will be at a lower level but within 3 months fill production should be achieved,
I also give no value to Picachio and other unexplored but possible acquisitions by the company .Plus the surprised introduction of a possible Fertilizer project.
In spite of the above, my projections are my own calculations so take them or leave them-time alone will prove how close I come.
Each line will be capable of processing 120 tons a day X 25 days a month = 300 tons per month X 3 lines = 9000 tons per month.
If all lines are dedicated to all minerals except gold I postulate a NET PROFI per month [after all expenses paid] of $1 million dollars {us] a month.
If one of the lines is dedicated to gold production alone, my estimate is that line would produce a profit of $590,000.00us per month. Again, assuming the gold ore can be achieved at the levels present assays continue to be achieved.
For Tara Minerals there are approx 40 million shares outstanding.
Tara Gold holds an 82% interest in Tara Minerals. Tara gold has over 100 million shares outstanding.
Depending on the multiple you place on the share value will determine where the shares will eventually trade.
Hope the above wakens investors up and interested in any legit comments /criticisms.

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