I must admit to not being able to follow the net debt numbers you are quoting above Kojak, although it does seem like the quarterly numbers do paint the wrong picture. Net debt at the end of Q1FY17 are given as about $2.8m and after Q2 it is $2.2m ($29.2m debt vs $27m cash). From this it would seem most of the retail cap raising component has been lost but the cost and price received figures don't add to the same.
At most they lost $150/ ounce for 20,000 ounces (rounding) plus about $1.5 m for hedging of about $5million in the quarter. I would then say they received approximately $10m after fees for the cap raising (waterfall graph looks to represent about that) which would mean thenother 5 million is mis-stated somehow between the reports.
That's just my take on it and given they could only make $24m in the quarter in gross revenue from 20,000 ounces at $1,200 per ounce I feel it would be hard to lose 50% of that figure after costs.
Anyhow, looking ahead and basing production figures on 20,000 ounces per quarter, sales at $1,200 and AISC of $1,100, we will have positive cashflow for CY17 of circa $3.5m and have a positive balance sheet by the end of the CY. My forecasts at the above assumptions show that we will have about $5m spare in the kitty after the final debt payment of $11.2 m in June '18. This is only ballpark and based on the numbers above given the hedging and debt schedules. Obviously, I also don't have the full picture so cannot know all costs and interest payments as well.
Anybody got some similar thoughts and production and cost assumptions?
TRY Price at posting:
15.0¢ Sentiment: Hold Disclosure: Held
