AHK Assessment

Ive been doing some more reading on AHK, still havent bought in. Interested in others opinions here.

Looking at Mt Porter only:

26.7koz @$1700/oz, less AISC of $1350 (conservative)= $9.34 Million in Cash Flow over 1 year.

Now the Mill agreement with Newmarket Gold for processing is where a few of the previous comments seem to have missed. There is a $30/ton processing fee, Im not 100% if this applies to Gold Poured or Gold Processed, if its the latter then this is exbornant as 500k/tns at Mt Porter would have a Process fee of $14.8 million. Doesnt seem right.

Ignoring the above (until someone else clarifies), then the agreement is 55% ARK and 45% Newmarket, after all cash costs are paid.

So that $9.34 million (not deducting any process costs) would come back to $5.1 Million to ARK in FCF.

Then the debt.... theres $6 Million Loan to be paid in bullion + $1.44 million in Liabilities + $1.3 Million in a security payment to DME for the MMP.

That means debt of $8.74 Million.

So negating all the other costs (exploration, MMP for Glencoe etc), I cant see the next financial year being cash positive once debts are repaid. Infact it may be 1.5-2 years away atleast.