I was much too optimistic about the expected fall in ASIC this quarter. It fell to a respectable USD1021 from USD1059 in the previous quarter. The mines in Ghana, Ivory Coast and BF are humming along nicely at well under USD1000/ounce but the Mali mine still needs a lot of work to optimise its operations and is currently running at a loss. The Mali mine should be fixed mid December quarter.
The all important cash balance fell to USD57.1 from USD67.7m largely due to increased expenditure on current Trade and Other Payables which fell from USD107m to USD94.4m, so in reality the lower cash balance is not as bad as it may seem, especially when one considers the one-off investments they are continuing to make that will be expensed over time. They also hold USD5.5m in bullion.
One negative point for me is that they do not expect to be cashflow positive until the December quarter.
EDITDA was OK at USD40.2m, so their cashflow is reasonably strong, but according to the Canadian accounting standards the company basically failed to make a profit last quarter (profit of USD0.4m.
The share price rose on the TSX last night ahead of the release of the report, but I expect that gain will be all lost tonight.
loki (we awaits a higher gold price to rescue our goldies)
EVR Price at posting:
97.0¢ Sentiment: None Disclosure: Held
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