Ann: June Quarter Production, page-87

First and foremost, I would like to thank the many gurus here - @precis, @line of cobar, @PamplonaTrader, @KKR, @flaming. I have learnt a great deal reading your posts throughout the many months. With so many positives and upcoming catalysts, I have decided to take a plunge investing into AMI.

Dissecting the production updates, I came up with the following:

• Scenario 1: Using the highest AISC without the by product credits, FX of AUD/USD 0.70 and lowest metal prices in Q2 of $6851 for Cu, $2276 for lead and $2633 for Zinc, AMI will be producing 32,800oz of gold at an AISC at $1024/oz.
• Scenario 2: Using the average AISC without the by product credits over the last 5 quarters, FX of AUD/USD 0.70 and lowest metal prices in Q2 of of $6851 for Cu, $2276 for lead and $2633 for Zinc, AMI will be producing 32,800oz of gold at an AISC at $683/oz.
• Scenario 3: Using the average AISC without the by product credits over the last 5 quarters and average monthly FX and metal prices, AMI will be producing 32,800oz of gold at an AISC at $494/oz.
• Scenario 4: Using the highest AISC without the by product credits, average monthly FX and metal prices, AMI will be producing 32,800oz of gold at an AISC at $835/oz.

In the past month, metal prices have rallied strongly anticipating a recovery in the global economy. Thus going forward, AMI should do really well with the increased by product credits.

• Copper price on 13July $9424 vs $8195 Q2 average price (15% higher)
• Lead price on 13July $2675 vs $2562 Q2 average price (4.4% higher)
• Zinc price on 13July $3190 vs $2982 Q2 average price (7.0% higher)

Also, AMI did not reveal the amount of silver metal produced in the past 3 months. This should amount to a few $million more credits and will likely reduce the AISC further.

And Peak will be mining the high grade Kairos ores with the zinc circuit installed and running optimally. This is evidenced by the increasing amount of lead and gold produced in June vs April and May. Well, we may know very soon sometime this week what grades AMI will be mining as from the past years, AMI tends to release the Ore reserves and Mineral resources statement in the 3rd week of July.


Looking at the metals produced in June, I took a stab at calculating the grades with the following assumptions:

• Processed ore at 95% monthly capacity.
• Gold recovery at 95%
• Copper recovery at 90%
• Both lead and zinc recoveries at 85%

And I arrived at these grades:


If these grades keep up, we will be raking in record amount of profits and cash flow. Also Hartley's is forecasting a 4c dividend for FY2021 if the 2c divvy isn't declared for FY2020.

All in all, like what many of the gurus here are saying, AMI at this price is dirt cheap. We should be trading in the $1 range and I believe we should be there sometime this year. GLTAH.