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.
1. management have lost credibility here. Repeatedly gave...
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Last
$1.30 |
Change
0.005(0.39%) |
Mkt cap ! $1.657B | |||
| Open | High | Low | Value | Volume |
| $1.27 | $1.30 | $1.25 | $9.627M | 7.524M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 400 | $1.29 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.30 | 158111 | 3 |
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| Last trade - 16.10pm 04/10/2024 (20 minute delay) ? |
| BGL (ASX) Chart |