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04/05/16
17:40
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Originally posted by kkkrrr
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at copper 2.20$ TGS is safe ... they are able debottleneck the project to 32500 tonnes p.a. ... they could do this from cashlow ... from 2017 they are able pay down debt...
at copper 2.50 TGS will be in the position pay down debt and add money to the cash position ...
the last quarerly gave us a mixed picture because already 5 million$ spent on capex ... administration costs will fall furter , processing costs will fall further (grid power up to 67% in march..same for April ... Jan/Febr only 40%) , they had problems with the crusher (fixed now) , they payed down debt at DRC-banks (from 30 million$ to 25 million$) , interest payments will fall significantly in 2016 because lower interest rates on borrowings.....
-operating cashflow at copper 2.20$ after debottlenecking ... appr. 40 million USD ...enough to pay interest and debt
-operating profit at copper 2.50$ after debottlenecking ... appr. 60 million USD ... very comfortable situation
..i would say the glass is half full not half empty ... its all about copper!!!!!
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Wow. Yr cashflowcalc. is fare away from the reality. With 2.20/lb OCF would be 33M$ (1.56 AISC / 27kt) and not 1 cent more. EBT maybe 15-17m$.
TGS Scenarios - Cashflow & EBT 2016:
http://hotcopper.com.au/attachments...8/?temp_hash=cfda459b65d4338d490941c031c85aef
But right it's all about copper.
Also look to the big boys. Some of them have better AISC than Tiger. So our cat should improve the output to 32kt for 2016 and/or bring aisc below 1.56 with more costcuts.
They have a lot to do these days... we need a very good 2nd quarter! With high sales, production figures and a lower aisc (<1.56) and also good news.