AXM have reported that the Wiluna mine is currently making $1M a month in operating cashflow.
It will be interesting to see if the $5M received from the Younami sale on top of the $1M a month they are currently generating is enough for them to trade their way out of the crap.
"Mine production planning indicates that this improved production will continue for at least the next two to three months, generating positive cash flow in the order of $1.0M per month at current gold prices. During this period future production plans will also be revised based on the lower gold price environment.
Reducing operating costs continues to be a focus of all operational and management staff, with total mine operating costs for the month of April 2013 at $4.7M compared to the average monthly cost of $6.4M in the September Quarter 2012. Initiatives are now underway to reduce total monthly operating costs to less than $4.5M per month while maintaining gold production at 3,500 – 4,000 ounces per month."
Furthermore, the market cap of the business is approx $5M at present. Why pay $50M (or even $25M) for one of its assets when you can buy the whole company for a fraction of that price.
AXM Price at posting:
1.4¢ Sentiment: None Disclosure: Not Held
