Hi Ridge .... Re Info. on CRS & Super PitI read it on another...

Hi Ridge .... Re Info. on CRS & Super Pit

I read it on another site ... Stockhouse .... here is a copy of the text for what it is worth:


"Forecast production this year of 300,000 ounces makes them the 4th biggest producer in Australia.

The recent exploration success at Central Norseman,however, raises the distinct possibility of significantly higher production over the next two/three years.

We could be looking at the second biggest Australian gold producer here!!!

... with negligible debt and hedging that will soon get used...

... we're looking at mega bucks in the near future.

Current approx recieved for POG sold: $500 AUD

Current approx cash cost of production per ounce: $320 AUD

Current net cash recieved per ounce?

500-320 = $180 Aud


Current spot price: Almost $600 AUD

600-320 = $280 Aud ... more than a 50% increase in net cash gained per ounce once the hedging runs out over the next 18/24 months.


However, with expansion at Central Norseman, we could also be looking at significantly lower cash costs... perhaps $260/280 Aud.

600- 280 = $320 Aud

With expanded production of 500,000 ounces (all purely hypothetical), we're looking at operating cash flows around the $150M mark.

ie 320p/oz x 500,000 ounces > $150M


That's approaching their current market capitalisation!

(And this is assuming the POG stays around $300 USD/oz, and an Aussie of 50c)


This is all hypotethical, however, the exploration work at CN looks very promising with very high grades found in areas that are not currently classified as reserves.


One more thing, a minig analyst at one of the brokers i deal with who went to Calgoolie saw a presentation by CRS management...

... and he says that the talk was that they're thinking of developing Central Norseman into a SUPER PIT.

Perhaps 500,000 ounces in the near future is conservative?

... and heavens help us if the POG starts to take off.

I can hardly contain myself "