it is costing us $216m a year to keep this dud going it is slowly eating us alive. If don't close it now we will lose everything. Even if it never produces again. Just write it off and forget about it. If we close it now we could make a profit of around $252m a year from other operations or about 8c a share.
sepon copper $69m golden grove copper $72m rosebery zinc $41m golden grove zinc $44m Sepon gold US$22m golden grove gold $4m
TOTAL = $252m or 8c per share
If we include Prom Hill we could probably make $333m or 10c a share
Prom Hill
100,000 tonnes of copper ($1.50 price - $1.20 cost = .30) .30 x 220m = $66m 75,000 oz of gold ($800 price - $700 cost = $100) profit $7.5 m TOTAL $73.5m
On a PE of 10 that would get us about $1
But if we don't close Century now today or tomorrow we're finished I reckon.
Based on cash costs gleened from the quarterly and today's metals prices to get a profit to get a yearly production figure quantities in the quarterly have been multiplied by 4.
Gold price = $801 Sepon gold US$555 golden grove gold $700
copper price = $1.54 sepon copper US$1.09 golden grove copper 32c
zinc = 52c rosebery zinc 30c golden grove zinc 31c
PROFIT/LOSE
sepon copper US$0.45 x 154,685,536 lb = $69m golden grove copper $1.22 x 58996672 lb= $72m
rosebery zinc 22c x 186,361,424 lb = $41m golden grove zinc 21c 209626,848 lb = $44m century -19c (including prestrip costs)x 1,139,388,656 = -$216m
Sepon gold US$246 x 88,760 oz= $22m golden grove gold $101 x 37,652 oz= $4m
TOTAL = $36m
Prom Hill
100,000 tonnes of copper ($1.50 price - $1.20 cost = .30) .30 x 220m = $66m 75,000 oz of gold profit $7.5 m $73.5m
The $1.2bn will be used at Prom Hill
All cash will burnt up to get Avebury and Prom Hill up and running
Also for about centipede, martabe and dugald river. we haven't got the cash for those projects.
OZL Price at posting:
$5.20 Sentiment: None Disclosure: Held
