I suggest that you look at slide 11 in the latest investor...

I suggest that you look at slide 11 in the latest investor presentation. The company has now moved away from AISC and is now using AIC which should simplify our calculations. The group consolidated cash flows take into account for all costs (operating and capital expenditure, working capital, current hedging, corporate overheads and regional exploration) and show the company will generate between 62-73M for a gold price of 1800-2000. As you rightly point out the development costs (including non sustaining capital) have been high and from what we have been told should continue to be for the first half as they accelerate development. I would expect this figure to reduce significantly in the 2H and it will need to in order to generate the cash flows they are stating.

Debt obligations are 33.3M for the year and are not included in the AIC, so cash flow for the year should be ~$29-40M. From what I can see, provided the gold price stays at current levels and they hit the production numbers they should be debt free in a years time. If they over deliver this could of course happen more quickly.

Still think this is a great acquisition for a larger player looking at bolstering their production profile (potential to be a 200k a year producer) with all infrastructure in place.