production report makes interesting read

Tanami never reported cash operating costs in the Qtrly today. So i guess we have to attempt to calculate it ourselves. Lets have a go.......

Production reports says 27,996 tonnes processed at average of 1.1 g/t gold. If we do the math... (27,996 x 1.1)/31.1 is actually ~990 ounces. And revenue on that basis would be..(990 ounces x $819 is $810,810)

TAM report 2,981 ounces produced.
At current gold price 2,981 x A$819 is $2.4m revenue.
TAM reported sales of $852,000, so the 990 ounces we had a stab at calculating above is closer the mark. OK.....Lets assume that all the gold produced was not yet sold. So the mismatch is fair and reasonable?

Net operating cashflow was -$6.675m. Fact...5B add up items 1.01 to 1.07.

So that equates to an all in cash cost per ounce of A$2,239 (ie $6.675m divide the 2,981 ounces).

Lets exclude development and exploration and admin from the costs.... and just try and get the site production cost.. so we leave out items 1.02 a b and d.

TAM report production cost of $5.96m. So divide 2981 ounces into $5.96m and you get $1,999.3 per ounce cash production costs. That seems very high??, but the mine is in start up phase.

If we reconcil that to cash now held, the company has at end of Quarter $4.15m (down from $10.179m at start of quarter). So the cash has been spent.

Now we have to ask ourselves a question?

What happens if the grades don't increase this quarter? TAM says they will.. "higher grade open pit ore is available within the next few weeks."

Exploration drilling has started (that costs $), mining has restarted (that costs $), and "No mining was undertaken during the quarter", so mining costs must have been low or non existant? They could rise a lot this quarter???

Back to our question?
Does TAM have enough cash/and revenue to cover its costs?

TAM shares are up 43% this month.... with $2,000/oz cash operating costs i'm not sure why? Anyone else help me out?

Is it the drilling? Visible gold in Muttley sounds nice... but its 245 metres below the ground... so it might be a couple of years before it can be mined. And maybe they find lots more? I dunno??

My estimates above could be very rubbery, so don't rely on any of it. Please check it yourself.

Always do your own research, and if in any doubt seek independent advice..ALWAYS.