UPDATED: Timberline Resources (TLR): Net Income
*The company recently announced a $3 million financing at $1.00 with half warrant. This will provide the working capital necessary for the next 12 months until production of Butte Highlands is realized. I updated the Net Income analysis below to reflect the increase shares outstanding, 52 Million Fully Diluted.
Timberline Resource Corp’s Butte Highlands gold project is fully funded to production (Q4 2010). Butte Highlands is estimated to produce 50,000 – 75,000 ounces of gold annually at an estimated cost of $400 to $500 per ounce. At an average expected grade of 0.27 ounces of gold per ton, and a projected production rate of 750 tons per day, the Butte Highlands Gold Project is expected to have a mine life of over ten years. With Gold reaching all time highs almost daily, Timberline’s anticipated first year Net Income is following a similar trajectory. With the stock at $1.30, there is plenty of room for upside here.
| Gold Price | Net Income | FD EPS |
| 1000 | $17,150,000 | $0.33 |
| 1100 | $20,300,000 | $0.39 |
| 1200 | $23,450,000 | $0.45 |
| 1300 | $26,600,000 | $0.51 |
Disclosure: LONG TLR
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Hi! can you qualify 0.27 ounces of gold per ton? I have no idea if this concentration is average or better than average.
Thanks!
doug
Doug:
That is about average grade for a an underground mine. Figure a $400-500 cost per ounce to produce.
IC
What are your projections for the price of the stock in 2012 and 2013?
Thank you,
Old Man of the C
it all depends on the price of gold
IC
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