With Bonikro pouring its first gold, the plant operating at nameplate capacity and grade reconciliation good, LGL just became a whole lot more profitable. 120,000oz p.a. at a (conservative) margin of $A400/oz equals an extra $48m p.a. net profit.
Assuming LGL reaches 1m oz p.a. production next year, each $A10/oz increase in the gold price adds $10m to annual net profit.
Sooner or later (probably when gold is safely over $US1,000/oz), the logic becomes compelling, even for the timid.
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