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Theory Of Borderline Profitability

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Rest in Peace
biggfredd's Avatar
United States
9104 Posts
 Posted 10/16/2011  12:47 am Show Profile   Bookmark this topic Add biggfredd to your friends list Get a Link to this Message Number of Subscribers
This link is to an ad looking for subscribers, so read it with that in mind.

He presents an interesting theory about gold mining. If it costs $400 an ounce to mine gold, a 3 million ounce deposit has a market value of $0 at any gold price under $400. However, at $410 (a 2.5% rise), it's suddenly worth $30 million.

I'd never seen it presented that way, but it makes perfect sense.

http://www.angelnexus.com/o/web/30009
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Silverhawk74's Avatar
United States
3670 Posts
 Posted 10/16/2011  01:21 am  Show Profile   Bookmark this reply Add Silverhawk74 to your friends list Get a Link to this Reply
Would it not it also be accurate to say, miners or mining company's set out to mine an area they theorize could contain precious medals based on historical charts of former similar areas which produced gold or silver or what ever? With no real idea of knowing what they will really find, if anything at all. So the digging location is just based on high probability numbers and history I would imagine....

Another words say you were planning to mine copper or nickel, but stumbled on a huge silver deposit. Obviously the company must be able to adapt to a situation, and let the area dictate what you mine, if they wanna stay in business and put food on their family's tables....

Also, as far as gold goes it is a known fact, that one must go deeper to find the best gold deposits. Like on Alaska gold mining show from history channel. Just as they seemed to get down to where the real gold was and figured out all the equipment kinks, winter was setting in and they were closed up for the year and way in the red needless to say....

I think the owner of the land knew exactly what he was doing. Let them do all the hard top work removal, wait til they go belly up, then send his crew in the next spring to pick right up where they left off down where the gold was starting to come up in larger amounts....

And lastly, zero profit at 400 an oz., and 30 million at 410 does not seem to add up right to me, even though my math compared to yours is way weak, lol. Is that just the tip over from red to black mendoza line so to speak?
Edited by Silverhawk74
10/16/2011 01:37 am
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biggfredd's Avatar
United States
9104 Posts
 Posted 10/16/2011  01:59 am  Show Profile   Bookmark this reply Add biggfredd to your friends list Get a Link to this Reply
Three million ounces at a $10 an ounce profit is $30 million. Keep in mind this is the value of the property, not an annual profit.
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Libertad's Avatar
Canada
3692 Posts
 Posted 10/16/2011  11:51 am  Show Profile   Bookmark this reply Add Libertad to your friends list Get a Link to this Reply
Did nobody notice at all that that website is spam and a potential virus?

Don't click on any buttons. Just press Control+Alt+Delete to shut down your browser. The video doesn't have control buttons to stop it.
Edited by Libertad
10/16/2011 11:53 am
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Namachieli's Avatar
United States
2120 Posts
 Posted 10/16/2011  1:02 pm  Show Profile   Bookmark this reply Add Namachieli to your friends list Get a Link to this Reply
Google noscript for firefox. You're welcome.
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