HI Wanelad1 - the life of mine operating costs are US$351/oz.The...

HI Wanelad1 - the life of mine operating costs are US$351/oz.

The capex is much more tricky, as they have over-estimated amounts in their capital raising for a few reasons, as well as the usual contingency amount:
1. RED has got 90% of Siana, but have taken the most conservative step of assuming their JV partner will not commit to their 10% funding required costs. Thus RED is ASSUMING to pay the ENTIRE of capex (which will entitle them to claim an increasing stake in Siana!). So when I talk about the capex cost below, be aware that it relates to 100% and according to the jv RED only actually has to contribute 90%!!!
2. Capex estimated at US$56.5 million plus US$6.0 million contingency, plus US$10.0 million working capital for first 6 months production - a VERY conservative basis (most operations never have that 6 months working capital).
3. Total life of mine costs, capex plus opex = US$473/oz

So you can assume that either RED gets more than the 90% stake we have estimated NPV's from, OR the contribution by the joint venture partner (bearing in mind that JV partner is related to the biggest bank in the Philippines) will reduce the overall cost to RED.

RED has always been ultra-conservative with its estimates of costs!