aisc is operational total sustaining cost - it doesnt incorporate interest payments.
this is specificlly why ev/ebitda is a preferred metric in gold miners vs p/e ratios - because many gold miners have large differences in debt exposures and so pure NPAT metrics mislead as to inherent value of one equity vs another
its also why you tend to find the spivvier gold mine execs promote their AISC heavily even when they have high debt loads - as its a slightly misleading number. but because they all do it to an extent (see EVN, SBM etc),
I took all this into acount when buying into TRY - their behaviour in how they position their stock is what id characterise as 'slightly dodgy small operator'. a bit homespun and not 100% corporate.
by this i mean things like - taking a decision to mine without strong understanding of resource, promoting month by month mine reconciliations with high variability without and updated reserve, failing to announce a material failure against expectations (84% recovery in March vs 94% in the mine plan used to build the mine should have been disclosed)
it all smacks of geos and engineers running the show without a really sophisticated market/corporate skillset overseeing them.
But the undeniable fact is companies with big margin, high debt to equity with rising earnings and potential to overshoot on ounces are always the best performing stocks
Just needs them to get their 's in one s' - as we used to say in the army - and it should be a star performer despite managements slightly unsophisticated skillsets
it should become a retail daring - their messaging and presentation style is the kind that tends to attract true believer retail followers
TRY Price at posting:
63.5¢ Sentiment: Buy Disclosure: Held
