No problem. I also should learn more, and also apply more of what I have come to have some awareness about. In this case I really should dig into the filings since going with the numbers in those couple NRs does not give clarity whether the numbers leading to the 1450 +/- result are after taxes, and it would be good to refine the number to get a look at only the cap ex on Black Fox to maintain operations and only the drilling on Black Fox to maintain mining plan/staging (i.e. infill and delineation). That would give an avg sales price to maintain income but not grow production, which I would take as an interesting number.
Here is my notes on figuring needed market price of gold, with some added comments:
production = P oz
avg AU price = G $/oz i. e. avg sales price on non-stream sales
This number should be approx market price of gold avg'd over period's (non-stream) sales
sales gross revenue S = $500*0.08P + G*0.92P
This accounts for stream, selling 8% at fixed $500/oz
So at what G does "all in" cost of production C equal sales revenue?
i.e. C = S at what G?
Using per oz values, c = C/P and s = S/P
s = 0.92G + 40 i.e. ($500*0.08P + G*0.92P)/P
so for c=s then G = (c-40)/0.92
And here is example of using this G = (c-40)/0.92 result:
The Mar 27 NR had a couple data points on income, and I take the "net" to be the closest to an "all in" number. Take these and divide by ounces reported for the period, and subtract this from the reported avg sales price for non-stream sales, i.e.
1712 - 194 = 1518 using $4.39 million net income
1712 - 409 = 1303 using $9.276 million income from mining operations
on 22,672 produced, 1712 avg realized oz price (non-stream)
so with
c = 1303 then G = 1372
c = 1518 then G = 1606
Again, I really should dig into the filings and determine if and/or how much of exploration is deducted when they come up with the two income numbers, how much of the deducted capital expenses is continuing operations maintenance and how much for enhancement of future capacity, etc.
