It's a shocker isn't it...where on earth can we find out AVO's...

It's a shocker isn't it...

where on earth can we find out AVO's total cash costs per oz of gold produced? they're always harping on about $452/oz (excluding royalties - mentioned 11x in total - but doesn't bother to say how much it affects it by)...
Avoca's real costs come in at $862/oz for 2010 and $969/oz in 2012 according to Patterson securities (Nov 2009 Avoca website). For 2009 they had total cash costs of $1172/oz. They also neglect to mention that Ramelius produce at a total cash cost of $420/oz currently.

AVO must think we're morons or something.

In situ value of resources? 1.447Moz of stated resources at a gold price of A$1200 considering costs of A$862 = A$532.5 million or 1x EV

RMS have a stated resource (uncut like Avoca's) of 271Koz "within the current mining plan", at a gold price of $1200 considering costs of $420 = A$211.4 million or 2x EV

So actually RMS is the cheaper option.

Deceptive isn't it?

AVO have projected earnings of ~$32million pa. RMS made $15.4 million in just one month... at full production imo RMS could be making about $38million per month, in other words, more in a month than AVO will make in a year.

RMS management have a knack of promising you a Datsun and delivering you a Rolls Royce. The expectation from the Wattle Dam to date was 4800oz of gold at a total cash cost $575/oz. Instead I've received 19,900oz of gold at a total cash cost of $420/oz. Grades were said to be ~12g/t + overcall, the grades going through the second half of December were 80+g/t. Enough to give me a big fat smile, from ear to ear.

If you want to know how undervalued RMS is by the market, consider this... according to a Bell Potter report from July 2009, they had a spec buy recommendation with a price target of 81c, they also had projected earnings of $14.1m for 2010 and $24.9m for 2011. At the moment, RMS are making those sorts of profits in under a month!!! let alone a full financial year!

disclosure:
I hold RMS and have some DIO, both LT. I also trade AVO shares ST occasionally.