what is cah worth?, page-8

cah

shares on issue = 520m

need to raise 30m - so an issue could be at 6c, or 500m shares.

options issued to macquarie = up to 133m

present nos of options approx 220m (only counting those with an exercise price of 10c or less)


nos of shares/options

approx 1.4bn

not sure what it means, but there will be a lot of shares on issue.

not sure how the forward hedges can be worked, but maybe it would be nice, if the hedges could be closed out. after all

"352,316 ounces of gold at an achieved fixed flat forward price of A$1,544"

present australian gold price =A$1400


difference between present price and hedged price = $150, per oz, or about $50m. if the hedges could be closed out, then that would go a long way towards providing the finance. not sure if it can be done though

recent report suggest a cash operating margin of $90m, at a poduction of 100,000 oz per annum, and a gold price of A$1500. cash flow of course will be a lot less, as there will be other expenses, and the loan needs to be repaid

on jan 22, the company indicated that the cash margin would be A$50m per annum mmmmmm - the gold price on jan 20 was US$850 . not sure what the australian gold price was that day, or the exchange rate, but why not have a guess, and suggest that the australian gold price was about A$1150. if this is approximately correct, then this might suggest that the extra $400 increase in the australian gold price is worth an extra A$40m to cash flow (nicely worked out on 100,000 oz of production).

anyway, on the numbers presented by the company, the cash costs of production would be in the order of A$650 per oz