Ann: Endeavour Mining Updates Agbaou Gold Mine Pe, page-5

re: Ann: Endeavour Mining Updates Agbaou Gold... Care to link us to this Rowingboat thread? Abit in the dark otherwise?

Or fill us in?

AISC i assume doesn't take into account debt repayments does it? I've been looking at a glance at the newspapers and noted many gold miners had AISC below the current gold price or $1100/oz yet were getting hammered (reported per the articles) as they had the most debt e.g. st barbara, silver lake etc vs some of the other debt free goldies.

My guess then is given those AISC the fact that those selected stocks were bleeding was the high debt levels translated into high interest payments not reflected in the AISC? Could be wrong though. If it did include debt, that doesn't explain why EVR has been hammered over the last yr, I mean our AISC below $1,100 is well below $1350/oz current gold price, let alone it's still below $1,200/oz back in the dark days end of last year.

I'd be interested to know just what's included in AISC, as obviously there are things not included for shares to be still struck down despite having < $1,100 AISC. Are certain admin, wages, corporate costs, interest not included? Wonder if there is an analyst in the house who can shed some light.

2. Not worried about the super profits tax currently, at $1,800/oz if we were to get back up there i'd rather deal with the super tax than with a sub $1,300/oz price.

3. No comment on the mine diversity and future potential as I need to have a good read of the next annual report - too far out of the loop. Will admit to burying my head in the sand abit.

4. I would certainly hope so - can't remember a figure off the top of my head for FCF figures - any idea? I would assume with the scale of projects, $120million debt could be paid off at current gold prices with relative ease. The problem is commodity prices swing so wildly these days that I wouldn't feel safe forecasting gold to remain at these prices for repayment purposes over say the next 3 years. Sure it may go up and even speed up those assumptions, but I'm taking the pessimistic approach - can we survive scenario, than factoring sensitivity analysis to the upside.

5. Is the Mali mine's high grade ore underground mined though? I assume not if the AISC is still dropping - or is that largely due to the grade?

Agree there is upside but abit worried about how it will be realised. It's abit overpriced now as I missed out on the last dip down to $0.60-0.70 but I would be more safe leveraged to NST.

AT its current price though it reflects (NST) a fine line if the POG heads back down, the share price will certainly go backwards. But if it stays , with the volume/mines and their track record of turning AISC around, if they replicate paulsens with that many mines, that'll be one to fill the christmas stocking with.