bbotcs re GORO Costs and more
In 2012, they had many problems, including problems with water & ventilation in the mine, employees, excess dilution in the ore, causing a hit to the grades & CF, plus the already dismissed class action lawsuit.
2012, They still pulled off
increased production to 90,432 AuEq at only 773 tpd,
All-In Sustainable Costs/oz sold $ 994,
Total cash cost $547 per AuEq including the royalty,
net income $34mil
Paying a substantial dividend.
H1 2013 averaged 823tpd netting 42,999 AuEq (within guidance)
H2 should be significantly higher as they have most of the 1500tpd mill expansion done. Note: the mine capacity to feed the 1500tpd mill will be lagging but the run rate for the mill has been 1000tpd for awhile.
In short they spent 2012 and H1-2013 rehabbing the mine & production team (including mgt). They did this from cash flow, while paying the divy during a time of very low gold prices.
Cash position $30mil+ Q2, adding production consistently, tight share structure, no history of dilutive private placements, industry leading dividend and near lowest cash costs, large land position 100% owned & overflowing with high grade Silver & Gold for future expansion.
Whats not to like? GORO looking better and better the lower it gets. Hothchild reducing its position might create a better opportunity. Divy over 6% now.
Might take a couple quarters to see the results, but I'm Betting their about ready to turn things up production wise.
Checkmate28
