Brigus Gold Corp. (BRD)

[gharma]

Thanks for the info and time. "Deferred revenue" sounds like funny money to me however. As I understand it 8% of gold production is sold at a loss (less than production costs) with Sandstorm paying $500/oz (subject to some minor "inflation" adjustment in the future).

So as I see it of the 27,818 oz sold in Q1 approx 2,225 went to SND leaving 25,593 sold at market. Now the news release for Q1 tells that the $1,626 avg price of gold sold excludes impacts on the avg due to the stream.

That is about all the info on Q1 in the news release
http://www.brigusgold.com/file.aspx?IID=4288058&FID=1500048313
with the Q1 financials due for release this Tuesday 5/14, so at the moment costs on a per ounce basis is not reported (per the NR)

BTW, if objective is to view Q1 it is worth remembering Q1 gold production was 1,500 oz less than the oz sold in Q1. This appears to be due to tonnage as grade improved from Q4 and recovery was constant.

Back to Q1 profitability, the ill-defined "cash costs per ounce" was $685 in Q4 and was $762 for the year '12. The guidance is saying the number for '13 will be $700 to $750.

If $700 is used with the Q1 numbers, then one has revenue (before other expenses) of
25,600 oz at (1625 - 700) = 23,680,000 for sales to market
2,225 oz at ( 500 - 700) = -445,000 for sales to Sandstorm
or revenue after only cash cost of production of 23,235,000

While that might seem far from the $45.0M number you have mentioned, I still do not see this $23M as representing the picture I would like to have which is the net from cash flow after all expenses, taxes, interest, etc.

The best avenue I see at a surface level is to use the "Net income and comprehensive income" number, which for Q4 was $4,390,000 or $157.81 per ounce of gold produced.