Brigus Gold Corp. (BRD)

[gharma]

point 1 - center had posted the projected 2013 info, so comment worked off of that also, and reference was not clear (late night) that it was to the projection slides in the latest corp presentation, and the fact that I misspoke in the post by saying "slide 11 of the deck for Q1 and 2013 guidance" likely caused much of the confusion.
http://www.brigusgold.com/Cache/1500047257.PDF?Y=&O=PDF&D=&FID=1500047257&T=&IID=4288058
point 2 - "total cash cost of production" is not a standard accounting measure, and some places where used makes it seem this is the cash spent on ore extraction and processing in the operation of the Black Fox mine.
That number is way short of the costs of running the company, extracting and producing salable result, selling, covering business/admin expenses, paying interest, paying taxes, etc.

Slide 11 seems to show that if BRD continues on strategy with mine development and extraction at Black Fox, and also undertakes the cap improvement but not the exploration expenditures at Grey Fox then the company needs a gold price at 1470 to be even.
Keep in mind that this cash cost of production on per ounce basis in only a part of the extraction to sales costs. The number I considered was for BRD to continue as previously contemplated except for one cash conservation measure, delaying Grey Fox exploration.
That is a little (very little - cap ex on Grey Fox only item) more than the projected outflow could be carved dwon to before impacting future production (or current) at Black Fox.

(I don't think the one-time charge for stream buy-back enter into this; the double star ** footnote on slide 11 really should not be on the entire "Operating Cash Flow" line but only the box of that line for the Q4 2012 results.)