Ann: Total Gold Sales of $23.5M from Jeffreys Find Campaign, page-68

Morning all.
@Pokerface
Good point mate.
The market is most probably just looking at the number of $2m distribution.
The way it is worded may confuse but there is another word on that line that I have underlined.



Yes, Initial.
Why?
As we all know the aisc for 2023 was ~$2,000
So from that, we know what the margin was then also.
There has been an increase in costs which are ~15%.
That means we have a current aisc of $2,300 which I expect will be pretty close to real numbers.
If we use the number of oz mined this year and multiply that by the current aisc we end up with $17,250,000.
The total revenue is 7,500 oz at an average gold price of say $3,650 to get ~$27,375,000
Subtract the difference to get the generated cash profit of ~$10,125,000
We then split that into 2 parts for the 2 partners and we end up with ~$5,062,000 for us of which we then take the $2m already received as per yesterdays ann to arrive at another ~$3,062,000 to come.
That is as close as I can anticipate for my expectations and rings true for the numbers we have been given.

Why do we not get the rest? I hear you ask.
In the first part of this year, we didn't receive $1m because the partner that does the mining keeps it until the mining has been processed.
That covers any costs and then the distribution comes after. We have the $1m back plus another $2m just announced.
The rest goes into the joint Honey pot or kitty and is kept there until the mining is over.
That means, there is something like at least $.2m in that joint Honey pot to over costs before distribution.
Later this year, we start on the next stage and we all know that is coming from the previous announcements.
The money held is used for the costs meaning that when all this is over sometime next year,
the profit generated will be clear of costs because they will have already been covered.

Don't like that?
That is how these types of mining JV's are done which may make it sound complicated.
It isn't until the wording of these explanations is digested by the market without the understanding.
I was a little confused too and nutted it out with great difficulty.
My numbers will, no doubt not be spot on, but that is an idea of what the ann means.

Here is an excerpt from The West Australian News Paper dated yesterday.


Last year was $4.7m and we know that this year has not only surpassed that in terms of oz but the gold price is much better than it was then.
Getting the picture?
The additional surplus cash we haven't received is still to come and we start on the next stage next month.
When that concludes, all of the funds will be distributed and our share goes into our own Honey Pot as banked $ for AWJ.
THEN we start on Munda.
Hope I have explained it well enough but I am just a dumb investor and find these types of JV explanations difficult to understand too.
The easiest way to work out what we are making is simply using the aisc of $2,300 and multiply that by the number of oz mined and divide by 2 for our share to get a total of ~$8,625,000 for us in this calendar year.
I expect Munda to be similar but we have 200,000 oz with a possible upgrade to that.
Ah no wonder I hold so many of these.

Kind regards, Wack.