AGO all in sustaining cost is about $85/wt, so it is about $90/dt. Production guidance is 8wmt this year, taking the water out again is about 7dmt. They have been copping ~15% discount from 62% Fe, so right now AGO should be receiving ~$107/dt, margin is about $17/dt, x that by 7dmt you get $119m this year, and x by 10 you get $170m next year, provided that benchmark 62% Fe stays here at $123/t and don't drop further. Huxley assumes that it will drop further next year so their profit assumptions are much lower.
AGO Price at posting:
83.5¢ Sentiment: Hold Disclosure: Held
