We've got $6m.Forecast Exploration, Development, Production and...

We've got $6m.

Forecast Exploration, Development, Production and Administration costs for this quarter is $17.5m. Lets say other costs (like interest, capex etc ..) are a (conservative) $1m.

This means we need to make $12.5m in silver sales THIS QUARTER in order to have $0 by the end of it.

We get $29.50/ (say) .92 * 180,000 = $4.9m for closing out this quarter's hedge, leaving $7.6m to generate.

At the current AUD POS of (say) $20/.92 = $21.74, we would need to sell an additional 350,000oz. Which means that total production for the quarter would need to be 530koz.

We know that July is only going to be 115koz, so this leaves 415koz for Aug + Sep - which is above nameplate capacity, and we're still in "ramp up" phase according to the company.

Even if we get through this quarter, if costs remain the same, we'd need to come up with a further $2.5m to pay off the over-run facility in the Dec quarter.

I always thought we'd have 12 months for the POS to rise significantly, but it looks to me that it needs to happen right now and by at least 20%.

I'm dumfounded that forecast costs have gone from around $12m/qtr to over $17m/qtr.

I'm ready to wave the white-flag .... what am I missing?