Just to assist in settling your nerves, the May 2017 DFS assumed a USD$1,250 gold price per ounce. The January 2020 Investor Presentation assumed a USD$1,450 gold price per ounce. The January 2020 Investor Presentation also assumed a USD$754 AISC.
If one uses the Sprott C3 costs figure from their recent report and then adds on the slide 9 Jan. 2020 Presentation, 'Sustaining Capital & Closure Costs' estimated at US$31/oz (to make it closer to the real AISC), then one arrives at a current AISC cost of around USD$1,020oz (i.e. C3 cost $988oz + $31oz sustaining capital and closure cost).
The gold price hasn't been below USD$1,600oz since production started! If one takes the cashflow averaging a price of USD$1,800 for the LOM you end up with US$780 margin * 907,000oz LOM production= USD$707,460,000 project cashflow. If one estimates a higher average gold price over the LOM at USD$2,000oz then the LOM cashflow is USD$888,860,000.
In 6 years, one has gone from assuming a USD$1,250oz gold price to a current gold price of USD$2,000oz! Unbelievable cash generation currently, and hopefully, if one adds more years of production after the imminent Okvau mine extension drilling ounce and the Memot ounces, look out!
https://www.emeraldresources.com.au/sites/default/files/asx-announcements/6819375.pdf
https://www.emeraldresources.com.au/sites/default/files/asx-announcements/6961534.pdf
Sprott Talking Today 14th., page-14
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