RE:RE:RE:RE:China's spreading influence in Eastern Europe worries WestCeFaci wrote: That would make Rovina worth 90X more. Rovinas low AISC (All-in Sustaining Costs) of $752 an ounce leaves a healthy profit margin of $550 an ounce at current gold prices and a $60-$70 million free cash flow every year. A preliminary economic assessment estimated Euro Sun Minings average gold production of 196,000 ounces and 49.4 million pounds of copper each year over a 19-year lifetime. This implies that Rovina and, consequently, Euro Sun Mining, should be valued at no less than $3 billion. Read more at:
Your statements are based on outdated information. The decisive factor is the technical report of 1 April 2019 - and only this one counts. You have to work through and understand these 345 pages; then you can express yourself qualified.
After that, the bill looks like this:
- Gold price: $ 1325
- AISC: $ 752 (net of copper credit!)
- Gold production per year: 108,000 oz
- EBITDA: (1325-752) x 108,000 = $ 62 million.
(For you, then you can learn something else: EBITDA = earnings before interest, taxes, depreciation and amortization) Net Profit after Tax and Capital Cost = $ 29 Million. Among the net profits they have to finance, among others:
- depreciation
- Project development
- Options, DSU, Cunsulting Fee for F & M
- Directors' fees
In addition: the cash flow model full equity funding
• no provision has been made for the cost of capital
• no provision has been made for corporate head office costs during operations
• no provision has been made for escalation or inflation
• no provision has been made for VAT payable
• No provision has been made for Customs import duty
There is nothing left for the old shareholder. That's the brutal truth!
urai58