EVN chart, page-2425

First 2425 Last

Share
Profile

Follow
Exised

6,248 Posts.

2951

16/11/21

00:36

Post #: 57598150
Share

Originally posted by Idle Wanderer: ↑

You'd be better off asking @nordesmic or Excised this question. But I'll give you my answer anyway. EVN used to be in the cheapest quartile for costs, using AISC as the comparator. In fact for a while they stated they had the lowest costs of any (major) Australian based producer. Then they bought Red Lake, which hasn't been going too well, and generally costs blew out. I'd say they'd be pretty close to the centre of the bell curve on costs at the moment, at $1413.
Sensitivity is a good word you've chosen because if you look at it the other way round, with a declining gold price, it is patently clear that the highest cost producers' share prices will be hammered hardest, until they go into care and maintenance or go out of business.
One outstanding difference for EVN compared to most is the credits added for biproduct metals. In the September quarter, despite Slange, they sold 204,128 oz of silver at $33 for $6.74 million. And, this is the big one, 6,000 tonnes of copper at $12,867 per tonne for $77.2 million. Most of the copper came from Ernest Henry. I dare say if EVN's share of Ernest Henry was owned by a stand alone company with few other assets, then it would be treated as a copper mine with gold credits. It's perfectly legit for EVN to do it this way, but just so you know, the effect of the copper and silver credits is to reduce the AISC by $492 per ounce. Without them, the AISC would be $1905. How we address this in coming to an investment conclusion is up to each of us individually I guess.
Excised. Are you directly addressing your comments back over the page in post #57551645 at me? Seems you are. I am well aware of the virtues of compounding, having purchased quite a few Sydney properties over the years, which have all outperformed gold. At my age and stage [and I reckon I'm 30-35 years ahead of you] long term strategies become less relevant. There have been times in the recent history of gold, e.g. between say 1988 and 2000 when even your patience would have been severely tested. But in the long run, we are all dead so don't fret about it too much.

Expand

Yes I agree, the majority of ones holding is determined by personal circumstances. In ones twilight years best not to put too much on the market.

But in the same personal light, gold bullion have never been classified as an investment per my footer on every post. Investments gain/lose value in $ terms, while insurance do not. My 22kg of insurance quite simply helps me sleep at night... as I said personal circumstances.

Last edited by Exised: 16/11/21

EVN Price at posting: $4.16 Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

Reply

Top Stories

DXB

Dimerix begins recruiting young kidney disease patients in Mexico for Phase 3

GTR

GTI extends uranium mineralisation at Lo Hema through development drilling

CHN

Chalice jumps on Putin nickel export ban threat – but then there's bad news

3 stocks with antimony news on Thursday

CU6

Clarity progresses SECuRE trial with positive safety results