re: Ann: Reaffirms Production, Cost and Reser...
Some basic calcs ($US).
87koz produced for the half, so 123koz to 138koz expected for the 2nd half. ie. approx 62koz to 68koz per Q.
All gold sold into hedge for the half (45koz produced + 7koz held over from Q1 = 52koz).
If all gold was sold @ $1550 then free cashflow would've been approx $10m. I get this by adding $39m to end of Q cash (difference between hedge price & $1550 x 52koz). This takes into account the $60m borrowed, plus I also assume the $14.8m cash & cash equiv from the previous end of Q was based on cash of $4m & 7koz of gold @ $1550.
Free cashflow based on 62koz per Q for the next 2 Q's would be $10m+ (33koz delivered into hedge & 29koz at $1550). I've assumed similar costs going forward per Q. However, overall costs may be less now that the plant is up & running (less capex).
Anyway, just a very basic guide that shows we should be increasing cash each Q from here on in.
TGZ Price at posting:
$1.53 Sentiment: Hold Disclosure: Held
