1. management have lost credibility here. Repeatedly gave presentations touting 1000-1100 AUD AISC for many years i believe. Now it is $1800 AISC and only $1550 AISC after much plant expansion. No reasons given as to the huge AISC increase- obviously high cost of labour and equipment in WA is probably 90% of the reason.
2. If it can achieve 250,000 ounces production at $1550/AUD AISC, it is still OK, as the gold price is nearly $1800-1900 AUD cash margin at this price. Given golds trend over time, this could increase. at that price, the EBITDA is around $450M, and a multiple of 6-7 gets to around $2.5-2.8bn valuation, so current price is very low due to lack of credibility.
in the chart, only AEM is at a lower cost on similar mines, so even at $1550/AUD AISC is still fine.
Ann: Successful completion of A$150M placement, page-20
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$1.27 |
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| Open | High | Low | Value | Volume |
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| 1 | 26512 | $1.27 |
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| $1.27 | 63228 | 4 |
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