cash burn, page-18

Champ, the $14m estimate is my estimate of all cash out per quarter. It includes estimates of production costs, admin costs, capex, interest, loan repayments. I stress these are my estimates. The big variable is obviously production costs as we're all guessing how much increased expenditure is required to increase production levels. I'm hopeful that production costs will not be much higher than previous quarters and that the ball mill and processing the stockpile will enable higher production utilising similar resources.

JD, I have not taken into account any lead revenue. Also, if you strip out Admin, Capex and finance costs, the "cost of production" would be closer to $16 than $23. Companies are fond of quoting low production costs but by definition this leaves out a number of cash outflows (not least of which are their usually inflated "executive management" and "director" fees). As per my previous post, "cost of production" is a meaningless figure for junior miners. The accounting calculation may classify you as a "low-cost producer", but unless you cover all your cash requirements its a moot point ...

As always, DYOR and good luck to all.