I think SH just crashed.
Here is a copy of a post I made a while back.
Mudguy, I can you please review/comment/argue my estimates below.
Thanks,
Teamjen
Folks,
You may have seen this before, but I have been working with this calculator last night and all morning. Using the M&I Tonnes and Grade from the new RE as well as the following inputs:
Recovery rate Cu - 86.5%
Price Cu - $2.9/lb
Recovery rate Mo - 60.9%
Price Mo - $15.9/lb
Recovery rate Au - 73.3%
Price Au - $1200/oz
Discount rate of 8%
Operating cost of $13.7/tonne Plus 10% contingency - aroun $15.00
Capital Cost of $4,500,000,000 Plus 10% contingency - around $5 billion
Comes out to $5.66/share ****Based on M&I only***** does not include Ag or Inferred (being proved up)!!!
I tried to be somewhat conservative on the Capital Costs and Operating Expense. You will note that a small increase in operating expense has a drastic effect on ultimate SP.
Link below and click on "Operating Calculator" then click on Schaft Creek. Note that the 2011 RE numbers are in there. I zero'ed out the Inferred resource.
http://shareknow.net/companies/2353
My inputs are based on a Preliminary FE completed by Wardrop "a Tetratec Company" for the Seabridge Gold - KSM Project in Norther BC - Dated June 20, 2011. 100,000 tonnes per day operation which is the base case for all major production high volume open pit mines. Note: their capital cost included ~$500M for tunnels.
http://www.seabridgegold.net/readmore.php?newsid=333
Can someone please spend a few moments to argue/verify unverify or validate my estimates?
