Nah, they did not loses money over the December quarter. Troy was never a problem of losing money but of not making enough pay back the debt or trade creditors (and trade debt was created to pay bank debt in the first place).
December end of quarter was 11.2m vs 14.6m end of September. And within that quarter Troy repaid A$4m to Investec. Production was 14227 ounces and gold price received $1216. The quarter was cashflow positive at 0.6m before any debt repayments. The March quarter should see something like 15500 ounces in production and gold price so far is 1305 average, looks like 1315 average if the gold price stays here until end of quarter. Due to hedges Troy will receive probably even more.
In the end this quarter looks like 0.6m base from last quarter + 2.1m more from higher gold price + 2.3m more from higher production. A$5m in cashflow. Having started the quarter with A$11.2m add to that the A$5m from operations deduct A$4.2m debt payment start of quarter, A$7.2m from end of quarter and add A$2.7m from CR in December: A$7.5m end of quarter with the Investec debt gone. Troy is working on lots of things though, OC exploration, road, camp, cut-back. All that costs money. Maybe trade debt repayment of 1 or 2m too. On the plus side Maybe another A$2.1m for the Casposo stake (option was prolonged until end of March).
While the SPP proceeds are not exactly needed they will be used to finance those costs and Troy will make good use from them in expediting the OC development and defining as large a reserve base as possible (looks near certain the reserve figures from OC will be impacted by available cash levels).
TRY Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
