OTCPK:STADF - Post by User
Comment by
SASFanon Jan 08, 2016 5:30pm
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Post# 24441917
RE:How bout that Taylor grade!
RE:How bout that Taylor grade!The grade beat has huge implications if it is consistent going forward. It essentially comes out to a 20% increase in gold production with no corresponding increase in expenses.
Management claims Taylor will cost about C$135/tonne to mine, transport and process. There's a 2% royalty on the mine. Recovery should come in around 95%.
I'm assuming a USD/CAD exchange rate of 1.40 (currently 1.42).
At 6.27g/t, I was coming out with mine cash costs of US$525/oz.
At 7.55g/t, it comes out to US$425/oz. This is ridiculously low.
At 200K tonnes milled annually (4Q run-rate was 275K tonnes), Taylor produces 44K ounces per year and has a "cash margin from mine operations" of C$40MM annually. To put that in perspective, Holt produced C$30MM of "cash margin from operations" through 3Q15.
Once up and running, Taylor should have significantly lower CAPEX needs than Holt.
Taylor could be a cash cow going forward.