Ann: Drilling commences at Morila, page-83

A summary of the AISC for the Quarter ending 31/12/19 for West African miners. Compared to the current GOLD price the AISC for most of these companies should show good profits. Given we will have comparatively little depreciation and projected CAPEX as well as no debt servicing or major Hedging issues to worry about we should come up very well in the profit stakes. Our exploration costs are largely local on our ground around Morila so should be managed well.
No wonder the Doc is moving at the speed of light to get more feed into the Plant. We should do very well. I note the Doc used the term 'make an awful lot of money' when talking about the GOLD and Lithium at the Down Under Conference. He enjoys using that term.
According to the ann 7th Sept Tailings are expected to produce 26350 ounces at a gold price of $US1850 which will produce an estimated net cash inflow of $US17 mill after Tax. That gives a cash profiit per oz of around $US645/OZ. That shows an approximate cash cost per oz of $US1205/oz. When we start feeding the Plant from from the Satellites, Koting plus Gold we find outside the Pit economies of scale will reduce our cash cost per oz drastically. This will flow into a lower AISC.
Net cash costs are not the same as AISC as that includes projected CAPEX and depreciation. There are some good articles on the components of AISC.
An extract from the article below " The average reported All-in
Sustaining Costs (AISC) was US$968/oz and to be considered in the lowest cost quartile an AISC of less
than or equal to US$822/oz was required. "
https://www.csaglobal.com/wp-content/uploads/2020/04/CSA-West-African-Gold-Mines_Dec-2019_MASTER.pdf