bleeding, page-43

Introvert

Cash costs are a strong function of grade and other variables.

The mineralisation at 2.9 gpt Au will be at lower cash costs. Looking at other high grade ops in West Africa you see Sabadala recently mining a head grade of 3.1 gpt au, at reported cash costs of $600 per ounce, Resolute mining 3.3 gpt Au at cash costs of $750 per ounce at Syama. But geology, rock mechanics, Met etc all different so hard to compare with any degree of accuracy.

So at 2.9 gpt au for AMX one could expect higher cash costs than above, possibly $750-850 per ounce. But there are many variables and really until these are known its guess work with huge margins for error. No matter how sharp the pencils of the Investor/Broker analysts are..and these guys really are just guessing, believe me.

So a poss scenario is AMX will go after the high grade first, pay off very quickly (lets say they mine the 1.3 m ozs of 2.9 gpt Au at 200k ozs per year, this gives about 7 years of production..not including any down plunge extensions, and lets say at a cash cost of $800 (?? to save time for me) per ounce, and a sell at $1800 per ounce, margin $1000 per ounce, then they will produce free cash flow of about $200m per year, pay down debt rapidly, provide cash for exploration), providing time to really exploit the scale of the mineralised system and add many more ounces through exploration that will get more effective with time. Provide the cash to build any additional circuitry for the met. They are systematically building a very significant structured database of the geology for sure, which will pay huge dividends in the future.

Problems funding a project with this sort of financials. I do not thank so. There is a lot of investment cash looking for a home, and they wont get much in the banks. The banks are seeing their loan books dry up, which will limit their growth. Always a home for good cash flow projects.

The intrusion related mineralisation is interesting one to watch and something that may offer some upside surprises, but when they prioritise actioning this is the question.

Someone posted a comparison with GRY. You have to remember GRY started in 2005, 3 years before the discovery of Batie, and are now 1 year (arguably) in front.

AMX have a Mining Camp built and fully operational...prob no more costs and time wasted in this area. GRY do not.

AMX have the prep lab up and running 50% above expectation. GRY still building theirs.

For whatever this line of thought is worth, and I suggest NOT MUCH. Keep your eye on the gold!