Canaccord came out with a note on BGL which stated they expect BGL to produce 200,000 Oz with a free cash flow of $A306m in FY 2025 with a POG of $2,134 or about $3,200 (14% yield on yesterdays MC). Working backwards that is an AIC of about $A1,675 which seems high relative to the DFS ASIC of $1,000 to $1,100 but what do I know. If the POG was $US2,300 the cash flow is $A356m or a yield of 16%. These are very high yields and make the current BGL SP look cheap.
Turning to SPR in a recent presentation SL stated that SPR will be a high margin gold producer in all gold markets (ie whether the ZPOG was high or low). Wrongly or rightly, I implied that the AIC or ASIC would be low like BGL, CMM and EMR.
If I use an AIC or $2,000 (I think that was what @Joelstar suggested) or $1,675 and gold production of 150,000 or 200,000 Oz pa then SPR cash flow at a gold price of $A3,100 or $3,500 is as follows:
The results speak for themselves.
While I may be wrong I feel SPR is heading to production of 150,000 to 200,000 Oz pa with a mine life of 10 years or more.
SPR Price at posting:
66.5¢ Sentiment: Buy Disclosure: Held
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