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There's also the new vein reported recently. The future is bright the future is gold..
Difficult to know if the last quarter production is an anomaly but assuming a modest decline in 2020 of 42koz at $1,550 it would still generate $65m gross revenue. AISC of around $1,000 looks feasible and unless CAPEX or exploration spend is high we should be back to net cash position by beginning of H220.
To put this in context net debt increased $2.2m in the previous 6 months following the $10.2m loan taken out with VTB. So we can say, owing for VTB, net debt would have reduced by the difference, being $8m. The average realised gold price during this period was just $1312/oz while AISC were $850/oz on 22koz production.
They appear to be struggling with keeping the sp this low as lots of buying at the moment.
These are not great quarterly results. This all but rules out a special interim dividend for now although there is no reason why one cannot be paid later this year. I was hoping to see 11-12koz produced and 14koz+ sold this quarter. Last year we didn't have the additional debt hanging over us nor the necessity to boost exploration spend in the year ahead. So while these aren't bad FY results I can understand why some have left.
What we can look forward to in the coming quarters are sales above $1550/oz, more drill results and the likelihood of increased reserves and a JORC-compliant Mineral Resource Estimate for the Rodnikova deposit.
Rather a pain to be holding this and FRES (from much higher prices) in a PM bull market, but that's why people are advised to buy PM funds/trackers rather than individual miners......I expect (hope?) to see increases in all of production/grades/reserve estimates in later 2020 but that will only bring current holders back towards break even. Sometimes best not to be first to the party....
Not bad results at all - These miners typically try and hit the upper end of their production targets. If they are ahead of guidance during the year, they often look to reduce their grades and mine marginal parts of their estate during the last quarter so that they can still meet targets but utilise less productive parts of the mine. These are good results. Revenues beat market cap we would expect record EBITDA and post-tax profits this year too. Not sure what the market was expecting, but I think the price drop has been engineered slightly to get cheaper shares. Should rebound as the news sinks in?
They may still pay a divi
any views on the results?
wasn't it really that bad?
It's manipulation of the highest order. Best not to fret about it and be content to enjoy the ride..
Exactly what I was talking about, another large sell just been reported from last week. Makes you wonder???
Let's say one of the bigger holders of these wanted to buy more how'd they do it? Let's see, one way would be to sell off a few large blocks to lower the price to their liking and then after time buy back in at the discounted sp level. It ain't rocket science :-)