$ 1,768.00/ oz. All-Cash Costs
1 - All-cash Empirical Cost:
This is a significant value that will show if the mine is really generating positive cash flow or not. Unfortunately, PAL has denied or been unable to provide this very important number and still indicates a "cash cost" that presents truly little financial meaning.
An easy and empiric way to look at the real cash cost of running a business like PAL is to take the palladium production for the quarter and calculate the cost per Troy Oz of palladium the company needs to realize to be able to break-even.
The last Q1 results are known and an All Empirical Cost can be calculated:
Production of Palladium in Q1 2014 was 42,641 Oz of Palladium
Revenue in Q1 2014 was $48.736 million
Realized Palladium price around $739
Loss for Q1 2014 was $26.666 million
What is the All Empirical Cost for Q1 2014?
All Empiric Cost = (Total Revenue + Gain/loss) / Production of palladium in Oz
All Empiric Cost = ($48.736 million + $26.666 million) / 42,641 Oz
AEC = $1,768 per oz.
