Would you sell now as so much potential and news due within 6 months, chasing rainbows I suspect
Reiteration from HSR
The results show, after £0.51 million of new funds raised, cash balances increased by £11k to £55k and net current assets over total liabilities by £26k to £0.93 million. A further gross £1 million was raised in July. This is with the Red Rabbit gold project being developed in a 50:50 partnership with Proccea Construction Co., with development finance of $33 million provided by local bank Turkiye Finans Katilim Bankasi A.S, and the company also having a joint venture in north-eastern Turkey with Eldorado Gold Corp. Red Rabbit is the key focus, with the company updating that “current progress on mine development includes the acquisition of all required freehold land, installation of perimeter security fencing and the laying of foundations for mine buildings. Long-lead orders and selection of mining contractor have also been negotiated”. It is added that “it is apparent from recent work that the project contains significant potential for further resource discoveries in the vicinity and the company is advancing to drill-testing several targets in the coming months” and that elsewhere “we have continued discussions with both Eldorado and a number of Turkish groups, on this project in order to determine the most beneficial way forward and in an effort to crystallise early value”. Thus, as well as decent long-term potential (the initial mine currently expected to produce at a cash cost in the vicinity of $600 per ounce), there also look a number of potential nearer-term catalysts remaining here. This is especially so with the shares having slipped back to a current 0.90p offer price, capitalising the company at circa £7.2 million. At 1p and below, our stance remains buy.
I don't disagree with your cost assessment on all known data released by the company some time ago, my own feeling is the company won't answer your question due to a number of factors, the easy ones being, the cost's are in Lira, our sales are in Dollars, we have witnessed a massive exchange rate move in our favour, oil has collapsed in price, but the main one is we are targeting 20,000oz from our known resource, I think you will find much higher grades be processed once up and running. Remember the mine life is 15 years, our debt for building it will be paid off after 5.
So I didn't get a reply from the company regarding my query on 'all in sustaining costs' but I was able to calculate a figure of $1150. This $1150 gold price is required to earn enough revenue from gold production in order to service our monthly loan repayments due to start in July next year for the subsequent 36 month instalments. This takes into account the $600 cash cost figure for mining operations and is based on steady state 20,000 ounces annual production normalised on a month by month basis
Kiziltepe Still on track for 1st gold poor 2nd quarter of next year
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