Using all of the info available I think we can obtain all of the info we need! Please read as follows!
Oct prod-8883 oz nov prod-6217 oz dec prod-10300 total -25400oz
most importantly
Cash oct 31st 12.5 cash dec 31st 4m
Assume average price for gold received 920 oz for nov and dec
gives us a revenue of 15 195 640 m for nov and dec
Knowing cash at oct 31st was 12.5m
and cash at dec 31st was 4m
gives us a cash burn of 23.7 million for the months of nov and dec ALONE!!!!!!
Expect 30m+ expenditure for the dec quarter
Ball park figure- cash costs are approx 1000/oz
acceptable or not at this point in ramp up of a new project????
I think a lot of people assume a new project will be cash flow positive as soon as production starts.... Think again
Unfortunateley, after digesting the above info, I have come to the conclusion CH had to go....... The 4m cash position at 31st dec primarily dictates this.....
VRE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
