massive costs

September Q production Report to shareholders.

TAM mined 49,829 tonnes of ore at estimated grade of 3.5g/t gold. The average grade into the gold plant in September is said to be 3.85g/t gold.

The plant treated 62,020 tonnes at av grade of 3.27g/t for recovery of 92.8% producing 6,051 ounces of gold.

They do not state the cash operating costs of the gold plant. But looking at the Appendix 5B we can make some estimates.

Sold $3.848m of gold.

Costs.....
Spent $1.15m on exploration
Spent $790,000 on development
spent $10.73m on production
spend $619,000 on admin.

If we assume the production cost is $10.73m then we divide by the number of ounces.... gives $1,777/oz of gold as a cash operating cost.

If we include the exploration, development and admin in this number then the total cash operating cost per ounce is actually $2,198 per fine ounce.

Cash at end of quarter is $6.037m and they say they have unsold gold of $1.35m.

TAM say that estimated cash outflow for next quarter is $8.5m

Means they need a placement or debt / hedging right now.

Ready for it?

Observation and my interpretation, never ever a recommendation. Always do your own research before investing.