Anyway it seems like my last post did not incorporate sandstorm...

Anyway it seems like my last post did not incorporate sandstorm finance.

So Revenue is gold price X recovered ounces

Table 6 is using 1750$ AUD x 479,685 oz Au Eq
which gives us roughly the 837$m figure

At current gold price of 1415$ AUD

The revenue is now 678m

If we stick that revenue in and assume the other numbers remain the same then we have a net operating profit of only
64m after 7.5 years of production or 8.5m/year.

It gets worse.. the DFS numbers above are not taking into consideration of Sandstorm deal.

The deal is that 15% of gold is sold at 500$/oz USD
For easy maths, i assumed 500$USD is 500$ AUD (when in fact it should be lower) and 400,000oz gold life of mine recovered as copper and silver is not sold to sandstorm.

15% of 400,000oz = 60,000oz
60,000 X (1415-500)= 55m (this is the portion MYG lose out on)


Therefore net operating profit needs to be deducted again.
64m- 55m = 9m.

Congratulations.. after 7.5 years of mining you have a net operating profit of 9m and haven't payed admin or exploration yet.


note: i understand that tax and royalty payments should be lower in lower gold price but one should consider highly likely cash cost blowouts and capex increases that ultimately balance it out. In my experience almost all goldies under achieve their forecasted cash costs due to inflation and complexity of operations.


This is not a downramp, it is just showing why MYG is finding hard to find finance. They may certainly get finance in the future but i think gold needs to recover a lot first.