Lederp seems so big on numbers, so here are some correct calcs:
Life Of Mine Production Revenue: $629 million
(Using $1425 current $AU Gold Price, Less Sandstorm 15% gold production at $500)
Total Costs Over Life Of Mine: $537 million
Made Up Of: Capital Costs Via Debt(To be Repaid): $50million Total Operating Costs:(As per DFS) $412 million Admin Costs(Gonna run with $3 mil a year - total onsite admin costs included in total operating costs) = $24million Underground mine development: $29million Debt Charges: $10 million Tax Payable: $12million
So therefor i get a cash surplus of around $90million after tax for the project at current gold prices. Tax payable was calculated on 30% on roughly $40million tax profit as at 31/12/12 MYG had accumulated tax losses of $15 million and also an asset of around $35million for capitilised exploration and evaluation expenses which should be able to be written off against any future company profits.
So even at current prices, MYG are fairly profitable.
MYG Price at posting:
4.5¢ Sentiment: LT Buy Disclosure: Held
