What about the collapse of the energy deal to provide the renewable energy at site. Energy costs will now be 66% high than planned for a considerable time longer - what does that do to an already uncertain AISC? No reason was given for the collapse but it would be a significant capital outlay with significant risks due to location, the company may not be able to find someone to accept that upfront exposure....Does that tip your report card into the red?
....Plus my calculations from the numbers provided show a contribution from operations in the second half of A$30M. Outgoings for capital etc I have at $72M. For Ravenswood and at the hedged gold price the company assumes a loss per oz of about $40 per oz. The current AISC run rate is over A$210 above this so I believe there is a further A$7-10M of losses to be included. Add in about $10M for central company costs and I see a total fund shortfall of about $60M with nothing more going wrong. To cover this they have $34.3M cash and bullion, and $35M remaining on the USD loan.......That takes us to the year end at which point there should be new capital project requirements for Ravenswood and Bibiani..........Hit it Red!!........"Money's too tight to mention!........"
Cheers
W
RSG Price at posting:
$1.78 Sentiment: None Disclosure: Not Held
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