I'll try to be quick because I've got other stuff to do.
How much LOM do they have across all projects?3-4 years based on what they have drilled so far. What you've said in your notes seems correct.
Do they own 100% of their tenements?
Page 62 of their annual report.
What is it about the management that makes them great? Any specific individuals/ experience they bring to the table?Graham and Geoff ran Amalg Resources in the 90's which ran a very low margin copper mining operation. To keep that alive they had to be pretty shrewd operators when it came to cost. They eventually got voted out by shareholders in I think 2002. Have a look at what happened to the company after that. This is obviously a much higher margin business than that. They've done everything they've said they would do since taking over Beacon. They've found a low cost project and they've built a mill so they can process the ore themselves with little fanfare.
How do you expect they make $4Mn a month in profits?Selling roughly 2,500 oz of gold per month. They said in their PFS that AISC was around $860 per oz. We haven't been quoted an official AISC yet. At a gold price of $2600, if the AISC is around $1000 per oz, a back of the envelope calculation for profit per month is:
2500 oz/month * ($2600 per oz - $1000 per oz) = $4,000,000 per month.
Obviously sensitive to gold price, US dollar etc.
Question- What does this mean on pg 4:Ore stockpiles at 30 June 2020 were 373,000 LCM, containing 24,000 ounces of goldOre they've already mined ready to go through the mill.
Question- What is the purpose of the hedge book?They've said on the podcast that they wanted to lock in a price to guarantee that they are profitable so that they can pay off the debentures. Now that the debentures have been paid off, we may see a change in strategy.
Is the $100Mn in equipment marked as long term assets, where is depreciation for them?I'm not seeing $100m in equipment on the balance sheet, I'm not sure where you've got that from.
Information on depreciation is on page 32 of the annual report. They are using diminishing value so depreciation will be a decreasing expense for them for their equipment.
3.8Bn fully diluted registry- would that be concerning? (Granted good holding by board and Top 20)Not for me, but it's a very touchy subject on this forum and some people have been pretty disturbed by the amount of shares outstanding. All that matters at the end of the day is market cap.
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