Perhaps I have my rose colored glasses on, but... I just...

Perhaps I have my rose colored glasses on, but... I just continue to be impressed with ALK being able to make money (when many other miners cannot), even when just producing 10k for the quarter!

Worth hanging around just to see Roswell hum and produce upwards of 20k per quarter.
i.e.... if most costs are fixed, then, an AISC half of todays quarter is not impossible... which would have seen a very different set of figures...

20k ounces produced - AISC around $1300 AUD
Sales closer to $3000 average price - operating cashflow of around $34 million.


that is what Tommi and Roswell is aiming for, and... I don't see why it cannot be achieved.

Even if they only get a 30% decrease in costs, at 20k production, operating cashflow would increase by approx $25.7m.

The other thing that really caught my eye, was the option purchase. For around $54 an ounce, ALK have 100% secured their downside price for 3 full years, with 60$ of their production not capped to the upside. The use of the debt facility (small upside as well) means they basically have liquidity of $100m. So there is no need for a capital raising at all.

ALK still have a full quarter of stockpiles if needed, so the plant won't go hungry, it's just a matter of getting the most they can out of Roswell.

What is interesting... is they have kept guidance. That is a big call. They need to produce just over 20k. Can they do it... with over 2 months of Roswell ore... I think yes, but the market has a right to be skeptical. Though as above, it is going to make for some very exciting numbers if they do squeeze inside guidance.



I am not in ALK for one quarter, the bad one is past, now it's about the June Q.