Ok folks
I put a call in and Spoke to Pb- Here is the explanation of AISC . In summary things have turned and are looking good
AISC went up due to the pre stripping of Duckhead and the increase in ore on the ROM which is equivalent to about 5 k ounces.
This quarter they will have the same mining costs but will produce 12-15k more oz. therefore this will result in a cash flow improvement for the quarter of circa 20m . How do you calculate this - look at current costs this quarter - assume addition 13-15k oz will be free as mining costs will be the same . This 13 k oz at 1160 15m usd or 20m aud in extra cash flow
Cash is increasing at a very good rate with October sales already lifting cash up significantly
The other way of calculating the above is to divide current production 29383 by 42000 which is 69.9% then times AISC by equals 722 USD AiSC for this quarter . Brings us back to a margin of 1166-722 = 444 per oz x 42k oz 18m usd cash flow
So in summary this quarter has started very well with sales already reflecting in increasing cash balance
The proof of in the pudding, and if the above materialises we could see a cash balance of 48-50 m Dec
BDR Price at posting:
16.5¢ Sentiment: Buy Disclosure: Held
