Company has given a rough guidance of capex requirements of around AUD$27m and cash costs of around AUD$250/ounce. Any ideas as to how achievable these numbers are?
I rarely trust company numbers but the team heading AMG look like they know what they're doing. Still, I have my doubts.
I was thinking if the numbers are achievable then the Tuvatu solidly underpins the current shareprice. We're getting the supposedly top class exploration dirt and leverage to the gold price for free.
Costs keep blowing out at EMP, it's up to $690/ounce at last count. I wonder if this is mainly because of their use of diesel generators for electricity. This would be a worry if it is because I think AMG will have to rely on the same for electricity.
What do people think of the AMG team too? I looked up their history and honestly can't find a better team to put in charge. David Porter has seen a dollar of shareholder wealth turn into multiples of that with Gasgoyne, and subsequent roles while less rewarding still delivered the goods. In his two year tenure as head of DMR the share price rose from 8 or 9 c to 12.5c - the takeover price, if I'm not mistaken. He moved on to Africwest gold after that. The shares went from 20c at float to 70c now - more if you add in divvies and the TYC in specie distrib. (It's known as Mincor now btw) - although David Porter left Africwest halfway through. As far as I can tell the three times in which he has held a managerial role he has managed to create shareholder wealth. Such a consistent record of wealth creation in junior resources seem rare.
Any thoughts appreciated!!
AMG Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
