Ann: Jeffreys Find Stage One Production Exceeds 9,400 Ounces, page-13

Today's announcement says they will produce approx 10,000 ozs and generate $9 million net to be distributed 50/50 ie $4.5 million each to AWJ and BML. The budgeted AUD price was $2,600, they have sold the gold so far (8,293 ozs) at an average price of $2,995/oz. If we assume the remaining approx. 1707 oz gold is sold at AUD 3,100/oz, average price will be $3,012.

Budgeted gold price was $2,600 so extra profit attributable to higher Au price = 10,000 oz * ($3,012-2,600/oz) = $4,120,000.

So therefore, without the higher gold price the net surplus would have been $9 million less $4.12 million (attributable to above budgeted gold sale price) = approx. $4.9 million surplus to be distributed 50/50 between the parties i.e. approx. $2.4 million each. Still nothing to sneeze at albeit fortuitously the high gold price has resulted in profit being significantly above the expected outcome.

GLTA & DYOR