They haven't 'raised' $40mil they have sold gold forward. 30000oz @ approx A$1350oz
Using really 'rough' ball park figures of A$900/oz costs & A$1350 POG thats approx 33% 'profit' as they still have to pay costs to produce the $40mil of gold, so approx $13.5mil 'profit' over 2 years.
1250 oz/month is approx 10% of MLX production going by the July quarter where production was approx 38000oz
Does that seem about right or am I missing something ?
As long as IO stays tanked & $A stays down MLX will still be generating significant cash flow based on July quarter production & cost. 38000oz x A$1350 - A$900 (total cost of sales) = approx A$17mil
It all hinges on POG & $A vs US$ but IMO, being in the AXS300 now it will move quickly if POG goes up and/or $A keeps going down.
The new Chinese gold exchange may expose so frightening 'truths' about shadowy world of 'real' physical gold vs paper gold from what I have been reading - 'old mother Hubbard went to the cupboard' stuff, could be a big shakeup coming. Maybe just a media beat up but worth a google:
Oct quarter coming up at the end of this month. Tin could be a spoilter if they haven't reduced their cost of production as the Tin price has come back a lot.
MLX Price at posting:
22.0¢ Sentiment: Hold Disclosure: Held
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