Buyback 10 million shares a month, page-22

Co is projecting 170,000 oz per year for at least 9 years at US$982 per oz, which is comfortably in the lowest 25% of the world gold production cost curve.

Much of this low AISC is attributable to cheap electric power in Ivory Coast.

Over the last three months they have produced about 33,800 oz, which, annualised, is 135,000 oz, still below 170,000 oz, due to the inability of the mining contractor to mine at volumes ahead of mill ore feed during the wet season, meaning (1) insufficient mill feed to date and (2) inability to select higher grades for the mill.

September quarter production number has been produced at a head grade which is about 30% below AG reserves grade of 1.22 g/t, at milling rates of over 15% which will increase to 5.5 mtpa.

This points to increased production and free cash flow at fixed costs of around $14m per month - ie anything over 7 or 8,000 oz per month is free cash flow.

Due to a very wet September, Co is treating ore straight from the pit without any stockpiles to select higher grades from but the dry season begins during October.

Co is milling close to 400,000 tonnes per month, which will rise when temporary crusher is installed.

A permanent increase in crushing capacity during 2024 will enable the mill to reach 5.5 mtpa of fresh rock.

In September, gold grade was down at 0.9 g/t and they still produced 11,000 oz.

(Bear in mind that Canadian companies are mining profitably at sub .5% g/t)

Once grade gets to the average reserve grade of 1.22 g/t, Co would expect to produce 30%+ more gold - around 14,000 oz per month.

With breakeven at 8,000 oz or less, tht should produce free cash flow of A$18 m per month, which will exceed the anticipated average annual free cash flow of US$ 137 million per year.

This trend should accelerate in the December quarter.

We can anticipate after tax NPV of A$ 1.35 billion or $1.25 per share - without taking into account the added value of a heap leach operation.