EGA price targets - $0.87 to $1.64 (18-30 months), page-25

For some perspective on significance of the moves in the gold price ...

Our expected AISC as per study is AUD $1069 or USD $768.

At gold price USD $1,300 our margin per tonne is USD $532. At gold price USD $1,350 our margin per tonne is USD $582. That’s an increase in margin by 9.4%. So our EBITDA also moves up by 9.4%.

For the move from USD $1,300 to USD $1,400 or margin bumps up from USD $532 to USD $632. That’s an increase in EBITDA by 18.7%.

Every USD $100 move in the gold price significantly boosts margins. That’s going to support a nice boost in the share price at production, particularly if this gold rally continues and we get to a gold price of USD $1,450 as analysts are predicting.