AISC way too high.
They added in a couple of unforeseen expenses increasing the costs by may $100-$150, but given the AISC guidance of ca. $800 they had 2 months of normal production and 1 months of full-scale truck fleet movement without any ore extracted. That means the first 2 months were below guidance already.
Financials:
cash 43.85m
debt 44.8m
net debt 0.95m
My figures are off because Troy includes the second debt repayment after the December quarter, thus 2x 5m or A.$6.6m.
So my adjusted figures have been:
cash $37.25m
debt $38.2m
net debt 0.95m
Actual figures:
cash $27m
debt $39.75m
net debt $12.75m
So they already lost $11-12m on the pit wall failure.
With January and half of February effected annual guidance of 78-80k ounces?
February/March/April will be very good. Then we will have the next wet season, but performance of 2016 should be bettered because of being in fresh rock.
Casposo also a disappointment. Why such a bad performance when in September qu. costs had already been lower? Maybe profits won't show up until Troy's share has been reduced.
This reports seems to be more honest, more professional then previous reports.
After all is said and done Troy will have lost A$15 or slightly more due to the wall failure. Some of the cost is due to deferred production, advanced studies / grade control drilling. So $12-$15m negative effect.
Given that Troy lost $40m in market cap due to the slippage there is huge upside potential now.
TRY Price at posting:
15.0¢ Sentiment: Hold Disclosure: Held
