sale of gold was capitalised and wasn't treated as revenue until commercialisation status (which has occurred in April)
march quarterly revealed development costs of $15.3mil, assuming gold sold was say 15koz at the hedge price of AUD$1140/oz. reveals gold sold of around $17.1mil.
Clearly they made no profit on the sale so it was capitalised, a stab in the dark suggests costs of around $1800/oz.
So the true development cost was around $32mil.
But for that cost we got 240kt of stock piled East pit ore, containing 24koz and stope ore development in Calais 143kt @ 6.3 g/t Au.
These guys were cutting it tight and got caught out by the Plant delay and slot firing issues.
But it is poor form to ask for more cash after raising $19.1mil late January.
The reasoning used for the capital raise was outlined below;
"Apex estimates that these delays, have resulted in deferred revenue of approximately $20 million during this
commissioning period."
If $20mil was the revenue being deferred, then they should have got out and raised $23mil to $25mil in the last capital raising so they at least had contingency funds.
The last experience i had with goldie burning cash at this rate was MON, from memory they dished up costs of $2200/oz in their first production quarter (Mar 08).
I sold my remaining stake today at 0.25, so in a way i am glad to being sitting on the sidelines.
- Forums
- ASX - By Stock
- AXM
- question ..or two
question ..or two, page-14
-
- There are more pages in this discussion • 1 more message in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add AXM (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
EL8
ELEVATE URANIUM LTD
Murray Hill, MD & CEO
Murray Hill
MD & CEO
Previous Video
Next Video
SPONSORED BY The Market Online