re: Ann: Annual Gross Profit of $9 million, $... I had expected the 2011 financial results to be in the red but did not figure the sp of UML to drop that much today. The overnight steep drop in PoG must have pushed some shareholders to exit. Another disappoinment is no divvy being declared for the year despite a positive outlook.
Anyways, here are some positive takeaways from the report:
- FY2012 to be positive with better head grades from the Newton and Tyndall zones. This is evidenced from the June Q report in which Henty produced 12,859oz at a cash cost of A$855/oz. Head grade should improve from 4.4g/t for 2011 to at least 6.0g/t per the reserves. I am projecting for 57.8k oz of gold produced at Henty for 2012.
- PoG in the recent months have jumped up strongly from A$1380 to A$1800 vs that of A$1385/oz realized for 2011. If PoG averages at A$1600 for 2011 and cash cost is maintained at A$900/oz, we are looking at pretty handsome margins here.
- Further resource/reserves upside from exploration activities around Henty has increased the mine life from the current 4 years. Current reserves are at 118k oz and Resources stand at 318k oz.
- No recurring losses from investments made in BCD.
- Success in Goldstone's exploration and drilling activities and for them to be able to prove their resources to the million oz mark.
- Company is sitting on a pile of cash. A$41.8m and growing in the coming months.
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