Cost math to overcome
I thought it was time for some more boring math the company has to overcome.
I looked at the 2014 financial statements and calculated All in Sustaining costs including Operating costs (minus depreciation), expenses and the capex of last year. The bottom line is in Q4 where they “went for broke” and produced 60k oz they still lost $8 per tonne and for the year they lost $20 per tonne milled which explains the millions in borrowing they did. This cost structure has to change before any of the mining in Phase II makes any sense at all. Here is a table of the totals.
Q1 Q2 Q3 Q4 2014
Total 67,922 57,849 64,154 82,975 272,900
Pd Oz (000) 42.641 39.222 32.56 59.771 174.194
AISC/oz Pd 1593 1475 1970 1388 1567
US$ 1274 1180 1576 1111 1253
t milled (000) 516.511 521.478 575.664 1071.129 2684.782
Rev (000) 48,736 50,497 46,441 74,426 220,100
C$ Value/t 94.36 96.83 80.67 69.48 81.98
C$ cost/t 131.50 110.93 111.44 77.46 101.65
diff -37.15 -14.10 -30.77 -7.98 -19.67
