enjoy your posts loki,any views on krm? May have to wait for the...

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giddiyup

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21/09/14

19:31

Post #: 14006935
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Originally posted by loki01 ↑

AQG is supposed to be a low cost operator and has $300m in cash. I am not a fan of their proposal to spend about $USD630m to develop facilities that could treat gold ore with a sulphide content. The new plant would allow for a 20 year minelife and produce 150k ounces pa. I think they will survive a downturn so long as they do not start their project upgrade until prices have recovered because they would go from being debt free to owing USD200-300m IMO.

RRL should survive, have a look at their latest resource statement and production and cost forecasts. Has some debt to help it get trough the recent mine issues following the high rainfall event.

MML - too hard to work them out, except to say that they are obviously kidding about their low cash costs when they release their quarterly reports statements. Has very little debt.

BDR should survive if they can get their act together - mining costs exploded in the first half of 2014 because they could not access higher grade ore. Management issues misleading statements, IMO. Debt of $60m, no hedge.

OGC - their Philippines mine is very low cost and I suppose they could put on C&M their other 2 mines in NZ. They have a fair bit of debt left to pay, which may be a problem in a low POG environment, I have no idea how much of an issue it could become, check it out.

loki

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enjoy your posts loki,any views on krm? May have to wait for the quarterly to get a better picture, has potential though as a low cost producer.
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0 Great analysis

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