Hi Kiwibirdl
The market has lumped IDC and Mt Kare together with rest of the Gold Stocks as the Gold Price in US Dollar Terms has fallen to $US1200/Oz. Yet almost all the Gold Mines on the ASX All In Sustainable Costs sit at $US800-1350/Oz, compared to Mt Kare at $US310-350/Oz.
You can see from the chart below that Mt Kare's Gross Profit will sit at $A950-$A1000/Oz, even at the current $US1200/Oz Gold Price. In US Dollar terms, Mt Kare will still generate between $US825/Oz and $US870/OZ Gross Profit.
There are very few Gold Mines in the world that can generate this level of cashflow at the current gold price. Mt Kare is one of them.
These are the sorts of numbers potential investors will be looking at, when the rest of the Gold Industry is barely breaking even, in terms of investing in IDC and Mt Kare.
You can see the AISC that the company is using in it modelling below, in the Lowest AISC Cost Quartile in the World!
And these AISCosts are based on a Head Grade of 10grams per tonne.
As Brian starts to fan drill, and bulk sample these bonanza zones from the adit, as the company has stated below, they are expecting to lift that Gold Head Grade towards 20 grams per tonne Gold.
This would further reduce the AISC by a further $US80-$US150/Oz, and double the production.
Its just the nature of gold mining.
I suppose we just need to let Mr McVeigh, George Niumataiwalu, Brian Rodan and Tony Burgess bring Mt Kare to life.
Cheers Nectar
