As promised, here are some comments on the BRR interview with Michael Anderson.
Michael spoke generally about the Quarter, and in glowing terms about the White Dam project which is producing 100k ozs of gold on an annualised basis @ a cost of $388/oz. He he said that this White Dam Project is spectacular and it continues to exceed their expectations. It has provided them with net cash of $24m+.
He also said that White Dam is overshadowed by the sale of the Cloncurry Copper Project (CCP).
They have a large amount of tenements around Cloncurry and they're selling some off for immediate ROE and to hugely bolster the Company's cash resources., and to return a lot of that to the shareholders (which is a tax efficient return). There are also immediate opportunities with CopperChem.
If they were to go mining themselves on the CCP then it would have taken them years to develop, to mine and to get cashflow., taking into consideration the payback period of ~3-5 years. So the Company is now cashed up, it has great cashflow and still has fantastic tenements. So they consider they are in a much better position.
They have already looked at other assets & have been offered some other developments.
To me personally it's a pretty exciting and profitable time to be with Exco atm. Onwards & upwards!
EXS Price at posting:
63.5¢ Sentiment: None Disclosure: Held
