"Cash cost for gold -$200/oz because of copper credits"
That is negative $200/oz assuming copper @ $4.00/lb That's why I think it would be very astute for KGL to hedge the copper and produce the gold for free and unhedged. The economics of having copper as a by-product cannot be overlooked. Basically, whatever price they get for the gold production you can add $200 per ounce on to that and multiply by 70,000 ounces to get a ballpark EBITDA.
Gold: $1,370 EBITDA: $110M per annum (($1,370 + $200) X 70,000)
KGL Price at posting:
$1.80 Sentiment: Buy Disclosure: Held
