RE: Town Hall22 Sep 2023 12:50
Loft I posted this earlier this month, copy and pasted below. Look at how much free cashflow Havieron could make per annum on 100% ownership (30% changed to 100%). Debt repayments and company taxes on profits to be deducted.
"I posted this in August but reposting to remind us about what we're here for...19 Sep 2023 14:27"
"If Havieron produces 400,000 ounces gold equivalent per annum" - 30 Aug 2023 10:09
GGP earns 100%. Using Aussie dollars.... $3,000 gold price less AISC $1,250 (use USD$800) = $1,750 profit per ounce. Let's be conservative and chop this down to AUD$1,500 per ounce to allow for any other cost increases.
$1,500 profit * 400,000 ounces * 100% = $600,000,000 (AUD$600million) profit to GGP. Say about GBP£300million per annum. Will only take a couple of years like that to repay all debts and be debt free.
You can play around with the assumptions yourself to arrive a range of possible outcomes.
If gold and copper prices rise materially during the expected commodity boom, then the profits will materially rise as well. £300mill could double to £600million. Lots to play for and if it plays out as expected then I expect the share price will rise materially, these numbers will bring in a lot of new buyers in Australia and the UK, plus the GDX.
LET'S CHANGE/UPDATE THESE NUMBERS FOR A HIGHER GOLD PRICE FROM 2025.
Using $3,500 AUD spot price, less $1,500 AISC = $2,000 AUD profit per ounce.
$2,000 AUD profit * 400,000 ounces * 100% = $800,000,000 AUD profit to GGP (AUD $800million). Say about GBP £1.6BILLION per annum.