Gold loan details from 8 Jul 2014 ann - $A25M Prepaid Gold...

Gold loan details from 8 Jul 2014 ann - $A25M Prepaid Gold Facility. The loan is repayable over 22 months commencing from the first anniversary of draw down of the facility and is satisfied by delivery of 33,000 ozs of gold at 1,500 ozs per month. In addition to reducing the gold loan balance, Southern Cross will receive a payment for each oz of gold delivered, equivalent to the gold price at the time of draw down less $A1000.

So they get $25M loan and have to pay back $33M over 1 yr plus 22 mths. They expect to mine 67,000 oz from Mt Boppy over 2 yrs at cost of about $A1000 per oz. At todays price that gives them a margin of $A520. So 67000 oz x $520 = $35m margin over costs. $8 million of that will disappear repaying the gold loan ($33m - $25m loan). So if all goes to plan they could make $27m from mining Mt Boppy.