For me. Qtr to Qtr is important to ensure the story is on track to deliver DFS results and were it may lack or excel. The journey is important to monitor as the destination as you want to avoid copping a GCY or BLK as much as possible.
CF BE on the qtr (before de-repayment) suggest its on track and at a good level. My rough calc back-solving out the CF statement, which can be cut a few ways, suggests AISC was around the A$1350/oz mark +/-$100/oz. Solid considering the key metric lagging still is head grade. If that gets to DFS levels and with other metrics at or above nameplate, $1100/oz or below is where it should land. If they deliver that a few quarters in a row it'll be easily north of $4/sh if it trades at multiples (7 to 10x EBITDA or FCFs) like quality peers.
With commercial production declared, we should be treated to more detailed production and associated costs to see if its on track to where we think it should be.
DCN Price at posting:
$2.62 Sentiment: Buy Disclosure: Held
