My take away from the financials So there seems to be some conflicting revenue numbers in the reports filed:
- the MD&A reports that 586,078 in revenue is a quarterly number
- the more intense Interim reports that as a 6 month number and that the past 3 months revenue was 319,780
I’ve run some rough math on both numbers (because I don’t know which is correct) on revenues as what could be expected going forward. Since Boston has not been completed it is expected Plant 1 accounts for all revenues so far. Scenario “A” is the Interim’s quarterly, scenario “B” is the MD&A’s quarterly
Plant 1 expects a 60% uptick in throughput from 50-80 tonnes of feed per day
A) 319,780 x 1.60 = 511,648
B) 586,078 x 1.60 = 937,724
Boston is expected to run at 150 tonnes of feed per day which is 3 times Plant 1’s current output
A) 319,780 x 3 = 959,340
B) 586,078 x 3 = 1,758,234
Plant 1 + Boston =
A) 1,470,988
B) 2,695,958
Either way it seems like revenue is going to jump 4.5 times more than where we are when both plants are where management expects them to be.
With these expectations, we should be turning a reoccurring profit by middle next year even with more expansion, upgrading and researching, provided that things go to plan, which I don’t expect as we seem to struggle to hit deadlines thus far. But, the outlook is trending upwards even if we aren’t progressing at the speed management was guiding for.
Also as a tailwind, most are predicting the price of gold to rise (some are significant guidances) from where we are currently, which should help our outlook.