1. Most Discussed
  2. Gainers & Losers
LAF 0.0¢

laf query: minelife vs reserves

  1. cdchi1

    8,165 posts.
    I have a small amount of LAF shares, with my main exposure being through my holding in Lion Selection Group. One thing that is confusing me, probably because my research on it has been minimal (hence small holding), is the estimated mine life of 6 years.

    The financing announcement stated that the mine life will be 6 years producing annually 10000t of copper, 14000t of zinc, 50000oz of gold and 590000oz silver.

    Now either the recovery rate is extremely low or im missing something here because the RESERVES statement on their website states reserves of 480000oz gold, 5.35million oz of silver, 71000t copper and 123000t zinc (Hixbar deposit still to be added).

    now 6 years at the above production rates will come up WELL SHORT of the reserves.

    Anyone more knowledgeable on this company want to highlight where i've gone wrong here, ie is it the recovery rate or what?

    thanks

    Cdchi1

DISCLAIMER:
Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.

Top