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Old 03-08-2007, 12:01 AM
missmisery missmisery is offline
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Join Date: Jun 2005
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Default Re: Pooling of human capital for the \'Two Plus Two Portfolio\'

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Where is the $125-$180/ton figure coming from? Is that revenue? Net income?

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From each ton you process, you extract a certain quantiy of silver (plus other metals too) depending on the grades (usually expressed in grams/ton). Let's say that when you process one ton, you get for 200$ worth of silver. It costs 50$ to extract it so you get 150$ a ton.

This recent article ( http://www.resourceinvestor.com/pebble.asp?relid=29510 ) about another near-term producer used close to 125$/ton in their estimates. However, based on historical data, Aurcana has higher grades than ScorpioMining. Therefore, for each ton processed, Aurcana will recover more silver than Scorpio. Thus my 150$/ton approximation
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