Ann: Operational Update and 2019 Production Guidance, page-30

Is stripping (up to $300 an ounce) an extra to the AISC or counted into it?
Earlier days announcements were estimating AISC of $1000 an ounce I thought
Latest update though has this:
“As a result, production guidance for CY2019 has been revised to 92,000 – 102,000 ounces at an AISC of between A$1,220 and A$1,320 per ounce. This compares with previous guidance of 105,000 to 115,000 ounces at an average AISC of A$1,200 to A$1,300 per ounce (refer to ASX release, 16 August 2018).
CY2019 sees peak mining material movements with significant waste removal planned for the year (as consistent with the 2016 feasibility study and the mine plan update released to ASX on 16 November 2017, “Dalgaranga Gold Project- Mine Plan Increased to over 650,000oz . ” The average stripping ratio for CY2019 of 14.0 to 1 is first half weighted, and reduces to a life of mine average of 5.5 to 1 post CY2019 as the majority of the stripping of the Gilbeys pit is completed.
Non-sustaining development costs of between A$250 – A$300 per ounce are therefore expected in relation to the capitalised component of waste stripping of the Gilbeys pit during CY2019.”


My maths is parlous but nevertheless : (DYO atithmetic!)
At the lower end of estimated production - 92,ooo ounces sold at $1710 ( the hedge price) that’s total of $156.5 million?
Less AISC at the higher end of $1300 leaves only $410 an ounce ( here I assume $300 per ounce waste stripping is included in the higher AISC )

Results in an expected minimum after production costs income of $37.7 million ?
But if the $300 an ounce stripping is not included in AISC that leaves only $110 an ounce not accounted for in production costs
Which would result in around $10 million after production costs to pay all other costs including interest , loans and onward exploration ?

In the September quarterly there was $839,000 paid on interest and finance ..... assuming that continues per quarter , it’s $3.356 million?

Which reduces the number to close to your $7 million but leaves other costs still to be paid including exploration .



For anyone interested in looking at some historic mining figures from Regis mining days at Gilbeys and discussion about costs this thread from 18 months back has some excellent information ( thanks @eshmun and @speculator101 @nordesmic and all https://hotcopper.com.au/threads/sitting-duck-for-sar.3552798/#.XCSykho_Xmo


Cheers