myg share price and gold price - 5 yrs chart, page-18

mja,

your reasoning makes sense but doesnt at the same time

production numbers worked out on $1250 per ounce below

7,500 oz for forward sell revenue $3,750,000
42,500 oz @ $1250 per oz revenue $53,123,000
total revenue on $50,000 oz $56,873,000

cash cost $950 per oz including payback interest and capex
x 50,000 oz = $47,500,000

profit before tax $9,373,000


also reduce interest on $11,000,000 + possible reduction in interest on any deal done for offtake of consentrate

if you dont take payback on capex into account there looks to be decent free cash flow available

I can hear the groaning comming for financial type boffins as I type, ha

71c4