word has it, page-24

Kermit,

This is my assumption:

$700 cash opex is based on 30000ozs production, therefore,

pcm, OPEX = $1.75mill

fixed costs = $0.75mill (bare minimum)

total cash outflows = $2.5mill p.c.m.

therefore, @ $1,350 p.oz A1 need to produce 1,850oz p.c.m. to breakeven

add in creditors (my summation is minimum 3mill) so that's another 2,200ozs minimum needed to be recovered to pay off the short-term creditors. How long does that take to achieve? how long till they spit the dummy? who knows! may never even turn into an issue.

so until we see the 2,000 odd ozs p.c.m. figure actually produced, I cannot see A1 being cashflow positive. Of course gold might sky rocket, but i wouldnt rely on that occurring.

Im now in the position where i NEED proof before reinvesting. Too risky right now. It is also why i am concerned over the necessity for future cash raisings.

just my thoughts!
Split