Don't you mean $1.380 billion in gross revenue?

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MRRC

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19/09/24

09:52

Post #: 75739874
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Originally posted by JoeKing2: ↑

No takers for the question I raised about 24 hours ago, so I'll press on and throw out a few figures based on numbers in the Denver presentation, and leave the numerically competent to give any analysis they may care to offer.

Page 9 of the Presentation suggests 2024/25 will produce about 413,000 ounzes and generate about $1,380m in gross revenue.

Using the mid point of the ASIC figure on page 11 of the Presentation implies about $970m will be charged against the gross figure leaving about $410m. Page 11 also sets out about $200m in other cash costs for the 20224/25 year (but doesn't seem to include D&A).

IF all these cash costs are expensed, and IF D&A is already factored into the company's forecast numbers somewhere, this suggests the company could declare a $200m odd pre-tax profit for the year. - or about 3.3cps. Tax mightn't be payable for another year or so.

For the 2025/26 financial year, continuing the assumption the company made in the Presentation that spot gold prices stay where they are now until then, the increase in gross revenue is implied to be $70m above what it was in 2024/25.

The net result that year, even assuming the gold price stays where it is until then, is anyone's guess. You'd think the abnormally high stripping costs to be incurred this year won't occur again in 25/26. The company may be able to get the ASIC costs down as well. On the flip side, the imposition of income tax will start to become an issue for cashflow and in determining after-tax profit.

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Don't you mean $1.380 billion in gross revenue?

RED Price at posting: 32.5¢ Sentiment: Buy Disclosure: Held
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