Been carefully sifting through the reports and findings are below. Welcome corrections to any errors. I think the doom and glom is over exaggerated.
As at December 31, they have 95m of debt to be repaid by 30 June (source: financial statements). This has subsequently been revised (announcement 25 march). Here are some numbers:
Production Q1 & Q2 2014 approximately 36koz per qtr (source Q2 2013 production without duck head).
Sales proceeds: 72 Koz x 1400 = 100m Cost: 72 Koz x 679 = 49m. (Based on c1 cost from Q2 2013 due to lower output.
Gross profit / cash generated = 51m Less sustaining cap cost = 10m Net cash from operations = 41 m.
Cash balance at December 31 = 18m (9m cash + 9m bullion awaiting settlement)
Projected cash at 30 June before debt payments = 59m
As you can see, there is a shortfall and hence why they had to recast maturity profile.
I am guessing 25 m in march, and June balance in September
Production in September expected to be approx 60koz
Cash from sale = 60koz x 1400 = 84m Cost = 60koz x 485 = 29m (based on cost for H2 2013) Gross profit / cash generated = 55m
Less sustaining capital cost = 5m
Cash inflow from Q3 = 50m Remaining debt per forecasted debt profile = 45m
BDR Price at posting:
59.2¢ Sentiment: LT Buy Disclosure: Held
