CTO's presentations keep going on about their cash costs being low without any mention of the huge development costs... and other substantial costs.
In fact total costs work out to be $3,022/oz over the 12 months, so in order to break even and assuming all costs were to remain the same the gold price will need to climb to over $3,022/oz.
the break down is as follows -
There were 8,451 oz produced over the last 12 months.
the following costs were incurred over the 12 months -
Exploration $4.447 mill or $ 526/oz (based on 8451 oz)
Development $10.393 mill or $1230/oz
Prod'n $5.600 mill or $ 663/oz
Admin $4.239 mill or $ 502/oz
Interest $0.859 mill or $ 101/oz
Total $3022/oz
When CTO talks about a theoretical break even being hopefully reached some time in the future however - it curiously considers the development costs as an asset - i.e. the tunnel as an asset not an expense !!
The tunnel as we all know is just a hole in the ground (and an expensive one at that) - it's not a valuable building... so CTO is hallucinating.
So if gold were to reach $3,022/oz tomorrow(with all costs remaining equal) ..then CTO would start to break even.
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