50k -100koz is a big range and there won't be any AISC declared on the sulphides until the pressure circuit reaches commercial production so it's anyone's guess what the 2018 year will bring. The 70-90koz of oxide production sounds like it's in the bag and at a low AISC of between US$750-800/oz.
Their gold hedge book sounds like its out of the money and their Turkish Lira hedge is sitting pretty close to the money presently. You'd need to do the calculations on those.
Sounds like substantial capex savings will flow through to the bottom line by completion and they also placed a lot of emphasis in the conference call on the tax rebates which sounded promising.
2017 AISC was low and they say they met guidance which helps bring the sulphide project home well within the company's current liquidity. No possibility of them having to put their hand out for more money based on that presentation.
38 cents per share profit after non-cash items is pretty good going from their present operation considering they are building this massive project in tandem. This people are solid operators.
It's hard to understand why the market doesn't like this company. They have been consistent performers in the past and built up their cash pile to allow them to take on this pretty ambitious and transformative project and also hunt down other opportunities in Turkey. Maybe it's the low IRR of the project that I've eluded to before, maybe its the country risk. Personally I prefer Turkey to Thailand, Indonesia, Brazil and West Africa. They seem to have healthy respect for business. Esh
AQG Price at posting:
$2.12 Sentiment: Hold Disclosure: Not Held
