Note 3 below outlines Directors reasons for believing the company is viable as a going concern. The company is profitable with large cash flows at a gold price of $US 1790 (around the current price) and at forecast production levels, has net current assets and is thus able to fund required spending to maintain assets and debt (including the payments for the takeovers this year detailed in Note 37). Obviously an assumption is that covid does not halt production altogether. I note given the major shareholder the company could survive major disruption with his support in any case. Chile covid cases and deaths have been falling recently after a surge in June and lockdown in the capital. It has one of the highest vaccination rates in the world (admittedly mainly with the Chinese vaccine). See ourworldindata for the most recent data. Most recent deaths have been among the unvaccinated.
https://www.abc.net.au/news/2021-06-11/chile-santiago-vaccinated-covid-19-surge-lockdown/100209768. AGD mines are remote in the mountains and I assume the workforce has been vaccinated.
"For the year ended 31 December 2020, the Group made a profit after income tax of US$7,667 million (2019: profit after
income tax of US$1,639 million) from continuing operations and generated net cash flows from operating activities of
US$30,482 million (2019: net cash flow from operating activities of US$29,635 million). At 31 December 2020, the Group
has net current assets of US$7,907 million (2019: net current assets of US$3,320 million).
There is still significant uncertainty over how the outbreak of COVID-19 will impact the Group’s business in future periods.
However, the Directors note the following with regards to the ability of the Group to continue as a going concern:
i. At 31 December 2020, the Group had a cash balance of US$12,401 million and approximately 6,200 refined gold
ounces in inventory with a fair value of US$11.7 million.
ii. The Group’s cash flow forecasts following the most likely mine plan and 2021 production guidance that forecast sales of;
• 50,000-55,000 gold equivalent ounces; and
• average 2021 selling price of gold equivalent ounces US$1,790, indicate that the Group forecasts that it will have
free cash flow from operations to meet its borrowing obligations, to meet the required capital expenditures and fund
the acquisition and investment disclosed in note 37.
The financial statements have been prepared on a going concern basis, which contemplates the continuation of normal
business operations and the realization of assets and settlement of liabilities in the normal course of business. Based
on the factors set out above, the Directors believe that the going concern basis of preparation is appropriate and the
Group will be able to repay its debts as and when they fall due."
(20min delay)