Replies to post #1590 on Brigus Gold Corp. (BRD)

[gharma]

I became tired of that very same "assumption" to get to an "all-in", and so started working it backwards from the stated net profit (which does not include cap ex or exploration, which have been previously larger than the net profit so BRD has in prior periods been operating in the red). Working from the net profit it appears that 1400 +/- 50 (things are adjusting due to cost reduction efforts previously announced) is the break-point. I could not find, not being an accountant nor having a temperament to tolerate digging into balance sheets for too long, how to get at the "all-in" cost in a way I would trust to be complete, and the net profit route seemed reasonable to me.

That said, as long as BRD is able to keep some of its exploration and cap ex funded I will be a happy camper as the pipeline appears to have some nice growth waiting to mature, and even if that must be put on slow burner or hold, it appears BRD should be able to operate in the black if the gold market continues in the absurd.

JMO

[wshaw14]

I am not all that concerned about gold prices. I dont believe they
will remain at these low levels much longer. JMHO

I used last Q to do an estimate. I know this is not exact, but it should be reasonably close.

Revenue $43,828,000
Net Income -$13,741,000

Total Cost =$30,087,000 Divided by (OZ) 27818 = $1081.00 cost per ounce including depreciation and other Inc & Exp.

Including capital costs 0f $37.9M over the next three quarters I expect they will need about $1300 per OZ to avoid negative cash flow and be able to keep up their expected capital expenditures.

$1081- (depreciation) $304.00+ capital expenditures $505= $1282.00 Based on 25K production.