BLK EV and Valuation, page-59

@talentless
Thanks for the info, I see you are correct on this amortisation. I had assumed since it was referring to capitalised costs it was the amortisation from the income statement but it is from the cash flow. I think it is not as strict as you say though since it is only includes sustaining capital not development, and I read somewhere that the capital only needs to increase annual baseline production by 5% to be considered development and not sustaining. Looking at the cash flow statements though it is as you say they seem to be expensing all the strip costs. I don't not see immediately how they get cash and AISC costs so far apart if they are expensing everything or is the cash cost calculated without the waste costs?

The operational figures are about the same in income and costs between Sept and Oct quarters so maybe the AISC costs are the same... If they only produce 20koz next quarter their receipts are about $33M and their costs stay the same they will only just break even operationally. However if they mine less waste costs go down, they talked about standing down a fleet or any other saving in costs would be cash on the bottom line. Also if they did mine 25koz max that is another $7M.

Of course all speculation on the best case and given the track record the odds of this are not good at best. If a $60M market cap can start to pull in 10% of that in cash in a quarter, then another, then it will get noticed. Of course this can easily get swamped by movements in working capital or gold price...