RE: RE: news Mine cash costs of US$772 per ounce and a royalty cost of US$137 per ounce, for a total cash cost per ounce of gold sold (3) of US$909 per ounce in the fourth quarter. Mine cash costs for 2011 were US$960 per ounce with a royalty cost of US$120 per ounce, for a total cash cost per ounce of gold sold (3) of US$1,080.
- Assuming 90k ozs for next year @ $900 / oz after royalties, SAS would be looking at $67 M in cash flow pre-taxes on their production. Earnings after taxes of closer to $50 M~. 2011 revenues were $110 M but came after operating costs and taxes was less than $40 M. If we assume they do $130 M in revenues for 2012, with operating costs only 20% lower the best they could hope to make is $45 M dollars.
380 M shares fully diluted @
.50 cents = $190 M or $180 M after cash. I don't know how you're doing your calculations but $45 M in earnings on $180 M enterprise value is only 12-13 cents per share earnings.
Production is moving from 70k ozs a year to 90k ozs a year (25%+), Cash costs are being lowered by 15%.. I don't know how that translates to 60% more earnings for 2012...
NES is a far superior investment, do us a favour and keep your picks to yourself since your track record of stock picking is a catastrophe.