Lederp, in my model, i have used total costs not MYG's projected C1 cash costs.
Please dont over complicate the deal with Sandstorm, keep it simple, MYG are getting $500 a ounce for 15% of their gold produced.
You always seem to highlight the negatives - not the fact they are receiving 41million up front for doing this.
They will now have only $50million debt finance.
All of the factors you have brought up have been included in my projections - im not seeing too many cash flow problems...
As someone has brought up, and i agree, the biggest assumption i have made is exploration success, which will allow them to basically double production over 5-7 years, JG has stated the company isnt that far away from upping production to 105k oz a year with some further exploration success. Ide say with some big exploration campaigns they could easily sure up a much bigger resource to support even more production - but of course, the gold actually has to be there.
Thats something we will find out in the future.
MYG Price at posting:
9.8¢ Sentiment: LT Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)