Great write up! The only point I would like to make is regarding...

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grenade001

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14/05/24

02:53

Post #: 73806837
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Originally posted by sunny10: ↑

Based on my research, I am Expecting current quarter’s revenue above A$100m, including A$14m revenue from unsold concentrate from last quarter. This might support the balance sheet.
Q3 end Hedge book till end Sept 2024 was:
Gold 13.54 koz @A$3082/oz(vs current spot A$ 3575/oz)
Zn 2157t @ A$ 3796/t(vs current spot A$ 4430/t)
Pb 2107t @ A$3316/t(vs current spot A$ 3380/t)
Copper not hedged
CURRENT QUARTER PRODUCTION IS MORE THAN TOTAL HEDGED POSITIONS.
Expected current quarter production and revenue (if all hedge book is cleared and the balance sold at spot prices) is:
Gold 14.5 koz @ average price A$3120/oz= A$ 45.24 m
Zn 5000t @ average price A$4100 /t=A$ 20.50 m
Pb 6000t @ average price A$3340 /t=A$ 20.04 m
Cu900t@ average price A$15000 /t= A$ 13.50 m
Unsold Concentrate from previous qtr= A$ 14.00 m
---------------------------------------------------------------------------------
TOTAL Q4 revenue if all production sold= A$101.28M
EXPECT HIGHER REVENUE IF ALL HEDGED POSITIONS NOT CLEARED IN CURRENT QUARTER
THIS COMPARES TO 1H 2024 total REVENUE OF A$ 147.3m
Capital spending guidance for Federation was lowered by A$10m in Q3 report.
IT SUGGESTS : EXPECT BALANCE SHEET BOLSTERED BY END OF THIS QUARTER

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Great write up!

The only point I would like to make is regarding the unsold concentrate.

I would add another 15-20% to the $14 million figure based on current price movements between 30 March and today. Which would be quite conservative considering the ongoing instability in the Middle East seeing no sign of abating.

AMI Price at posting: 18.5¢ Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

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