GREY:DRGDF - Post by User
Post by
shermandrockon Jan 27, 2014 10:06am
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Post# 22137303
Sustaining Capital: Timing
Sustaining Capital: Timing
Of the $131, $45 is due to the amortization of capitalized maintenance and stripping costs. From a cash standpoint, that cash is spent and will not be a drain on cash reserves.
With respect to $40 for the tailings dam, that is a Q2 & Q3 project.
So, it is looking like an all in cash cost of $963 per ounce or a margin of $287 at $1,250 POG. This is calculated as Cash costs $850 [mid point today's NR] + Sustaining Capital $91 [ $131 less capitalized maint & strip of $45 ] + G&A of $19 + Exploration of $3.
With a net margin of $287 per ounce, there will be no need for a cash raise.