RE: One point5 Nov 2018 20:26
Hi Seingred,
I was interested about the purchase of the Mesquite Gold mine by Equinox thinking it was quite a good deal for Equinox, $158m for a mine producing forecasted 140-150,000 oz per annum. Only skimmed it a little, but AISC for that mine is set to increase from $864 to $1,000-1,045. I know the mine is already up and running and I'm not sure on life of mine, but that would equate to around $30.5m profit based on current gold price and 145koz.
If we look at 100,000oz production at $700 AISC for condor that gives us $53m profit. I know we have to fund the mine build of $120m but very simple maths would mean that we make $20m per year profit over the Mesquite mine and over a 6 year mine life we could pay that back. Scope to increase production as Mark has been saying in all his presentations and high grade.
What are people's thoughts?