.172 but this is not a decisive move. However it will create some momentum at today’s open.
Since you posted this SFMI has moved a bit to .1999. This movement is all on speculation. The decisive move will happen when they release the recovery rates. If they are at the rumoured 1 ounce per ton gold equivalent SFMI should go straight to a dollar. There is 800,000 tons of this ore just sitting around in piles. How much easier does it get? Well, it doesn't......
Even at 160 tons per day SFMI would be extremely profitable. 160 tons x $1,250 = $200,000 a day gross revenue. Of course SFMI wouldn't keep production at 160 tons per day for long. At that rate it would take 5000 days to mill it all. Thats 13 years of straight processing every day.
I know the mill is capable of being ramped up to 400 tons per day so that gets more interesting. 400 x $1,250 = $500,000 gross revenue per day and they could keep that up for 2000 days or 5.5 years of straight processing.
Either way you mill the gold the gross revenue is the same, given $1,250 gold. Eight hundred thousand ounces of gold is worth 800,000 x $1,250 = $1,000,000,000. I dunno, even if the recovery rate was 1/2 an ounce the gross revenue would be $500,000,000.
Okay... I know you're skeptical.... So what if the recovery rate is only 1/10 of an ounce (3.1 gpt)? That means that all that unprocessed ore is worth only $100,000,000 and at 160 tons per day SFMI would only gross 16 x $1,250 = $20,000 per day. Crap that would suck, right? Or would it? I guess it would mean that they would have to ramp up to 400 tons per day sooner. Then the daily gross would only be 40 x $1,250 = $50,000 bucks a day gross. I guess if it all falls apart and they only get 1/10 of an ounce they'll be able scrape by on $50,000 bucks a day, or $350,000 a week or $1,400,000 per month or $16,800,000 per year?
So, is a company that is grossing 16.8 million bucks a years worth 20 cents a share? I dunno?
Just imagine though if it really is 1 ounce per ton and they ramp up to 400 tons per day quickly. That's $182,500,000 gross revenue per year. Probably be able to buy a few bags of chips...
The coolest thing about all this is that the mountain, War Eagle Mountain, where all this ore came from is still sitting there full of gold and silver....... The unprocessed ore is just a means to get to the mother load.....
