I looked closer at the DFS... and it seems to me that they have been presented in a vague way to hide the actual figures. Cash costs seem to not include the underground jumbo development costs?
The MYG dfs: http://hotcopper.com.au/announcements.asp?id=445965
Ok now look at table 6, total operating costs is 309m
309m minus 235.7m = 73.3m <--why is this missing?
I look at table 5, i find something called jumbo development for 73m.
Actual cash costs will be around 800$+ as underground mines tend to incur ongoing capital costs.
With taxes, royalty and interest payments, the profits aren't actually that much as the total cost per oz is around 1250$.
This is reflected in table 7 where the first 5 years only providing net profit of under 20m/year..and big money only coming in 2019 and 2020. Average NPAT over 7 years is 25m/year.
Cash cost is very misleading nowadays.
MYG Price at posting:
10.8¢ Sentiment: None Disclosure: Held
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