70 percent ownership of everything outside cascavel , based on them spending 9 odd mill in 36 months.
Why I want to know about it is the deal struck with Anglo was also based on a 3 million cash up front, which they have already given to ogx.
So this says to me if part of the contract has already occurred then ogx might be locked into the rest and harder to renegotiate
Ever tried getting a car loan for 20 k, then say after you have the car and loan you will only pay the principal back? Generally banks want their interest too.
Same principal, the contract or JV has kicked off, it's begun. But ogx say on their website it's in neogitation... given the 70 percent is such a large percentage and given off are now investing more than half of this capital raising in drill and discovery it's important for me to know about this 70%JV
Out of every 1000 oz mined from anywhere else other than cuscavel 700 oz goes to Anglo under a 70% jv. And this is with ogx paying to actually mine it all. Anglo just had to find it
And let's say out of 1000 oz recovered it costs say 500 oz aisc (850 dollar aisc) that means for every 1000 oz mined ogx would be at a loss of 200oz for every 1000 oz mined (pure loss making operation) or the equivalent of making a loss of 340k aud for every 1000 oz of au recovered. Or if they ramped up mining to 5000 oz a month that wasn't cascavel, under a 70%JV and a aisc of 850 dollars they would be loosing 1.7 million a month every month in operation
I think you can see how important the JV is
OGX Price at posting:
12.5¢ Sentiment: Buy Disclosure: Held
