"Can you name one gold company on the ASX that could withstand selling 70% of their output at the hedge price and using 20% of their revenue for debt payments without going broke?"
Sounds like a job for Capricorn....... 70% x 30k oz = 21k oz @ $2290 /oz hedge price = $48.09m 9k oz @ $3200 = $28.8m Total sales revenue = $76.89m
30k oz x AISC = $1340 /oz = $40.2m Plus debt hypothetical debt repayment 20% x $76.89m = $15.378m Outgoings - $55.578m
Crude net profit = ~ $21m / per quarter
I remember the CAI DFS assumed an AISC of around $1350 /oz during construction
CAI Price at posting:
16.5¢ Sentiment: None Disclosure: Not Held
(20min delay)