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2.3¢ a1 consolidated gold limited

2,500 tpw @ grades 10.5 -15.5 -24 g/t au, A1 mine!, page-34

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flyboy77

7,186 Posts.

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01/11/16

23:14

Post #: 20295860
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Originally posted by flyboy77 ↑

We need to reflect more here folks.

From the attached excerpt, 2094oz produced in Sept qtr. at 95% recovery. There's $3.5m right there.

Sydney reckons they can process 2500tpw. let's run with 2000tpw over 12 weeks or 24000t.

Let's assume grade 'only' 7.9 g/t but i'll run with 95% recoveries.

That means that could produce north of 5790oz. or $9.68m in gross revenue. if the grade is 10g/t gross revenue grows by 25% to $12.1m.

So between the Sep and Dec qtrly revenues, it appears the $9m expenditure looks easily covered.

Moreover, they anointed production costs at $4.5m. on those 5790oz = $777/oz (and lower again if the grade is circa 10 g/t). At gold AUD1672, that's a real sweet margin?!!!

I would have thought development costs would be capitalised over many more ounces than just the qtrly production?

Is there really a need for doom and gloom?

Again, their IR/PR skills leave a massive amount to be desired imo. Could do a better job blindfolded.

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i should add that i meant the $3m "development cost" would indeed be capitalised but amortised over LOM, not just the Dec qtr's production.....

AYC Price at posting: 2.8¢ Sentiment: None Disclosure: Held
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0 Great analysis

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