19,400t of copper produced 14,900oz of gold 1,220,000oz of silver
copper revenue @ $3.79/lb = $162M gold revenue @ $1,770.00 oz = $26M silver revenue @ $34.60oz = $42M total revenue = $231M total revenue, per presentation, $222M free cash, pre tax, $79M assume other costs, such as smelter, $9M
if the costs were simply $0.88/lb then the total opex would be $37,626,688 (i.e., 19,400 x 0.88 x 2204). the free cash flow would be $222m - $38M (cash costs) - $35M (capex) = $149M
but this is not the case
the fact is the free cash flow is $79M and not $149M
why?
because the gold & silver revenue is included in the calculation of the copper cash costs
the cash flow is worked out as follows:
total revenue $222M (include deduction for $9M smelter) less CAPEX $35M less copper cash costs $38M less gold revenue $26M less silver revenue $42M equals free cash $81M (mistake somewhere, should be $79M)
AZS Price at posting:
4.7¢ Sentiment: None Disclosure: Not Held
