A $1 billion a year cash machine. Open the mill, open the till
Here's the rough maths which tells all.
Initial 721,000 ounces @ 5.85g/t
2.5Mt Mill has capacity to crush circa 7,000 tonnes per day.
Accordingly production amounts to approximately 1,250 ounces of gold per day
For this example presume you sold it all at today's rate of about $3,550 per ounce.
That in turn would create revenue of $4.45 million per day.
If you could make that happen for 365 days in a row then assume gross from gold sales to be $1.64 billion.
Assume an AISC of $1750 an ounce then total costs would be around $800 million.
That leaves greater than $800 million dollars in surplus cash, per year.
Not saying you could ever fulfil the above, but it does show you that by opening the mill you are opening the till. And if the gold price were to spike upwards then you are sitting on gold mine that is going to throw off $1 billion in surplus cash annually. Is that what we are hoping for from Simon Lawson, or are we going to drill more holes for another year? I know what I'd be doing.
SPR Price at posting:
74.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)