Dont overlook the $34 million in cash they had at end of last...

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happy Hippy

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25/05/17

21:23

Post #: 24919071
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Originally posted by rumbai12 ↑

Good Post.

I think it is better to be conservative and use figures on actual and if they improve then there is upside instead of forecasting too optimistic figures.

If we look at the last quarterly, management were forecasting outflows of cash as $38M.

This was comprised of:

$6.5M in Exploration & Development costs
$1.9M in corporate and admin costs including interest payments
$29.6M Production Costs.

Previously I read that the mill can only accept 1.8M MT of ore per year.
So that is 450,000 per quarter.
I admit that the grade will not, hopefully be as low as 1.5 g/t as last time. Lets assume 2 g/T.
If you assume 30 T/oz on 450,000 T for the quarter, then that equates to 15,000 oz for quarter.
That would be AISC of $2533 per oz.

LETS ASSUME that things improve and 20,000 oz is produced.

That is AISC of $1,900 and cash costs of $1500 per OZ.

I hope these figures are wrong, but there will definetely, need to be another capital raise of $10M+ within 3 - 6 months.

Obviously when you find grades in excess of 4 g/t then you are going to have better quarters.

Like I previously stated management needed to pullback on further development, drilling and non-essential capital expenditure.

Every dollar saved now will be worth $10 going forward.

DYOR.

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Dont overlook the $34 million in cash they had at end of last quarter.

BLK Price at posting: 25.0¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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Dont overlook the $34 million in cash they had at end of last...

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