Cash cost and Sustaining Costs for Snow lakeHave not been changed in the past year for 2022 (page 45 of the Feb, 2022 presentation)
No change production
- Au 160K
- Ag 946K
- Cu 11K
- Zn 51K
No change in by product credits
- Ag $23.00 per ounce
- Cu $3.30 per pound
- Zn $1.15 per pound
No change in Gold cost
- Cash cost $361
- Sustaining $1,027
Capital expenditures change from last year
- Sustaining $96M to $115M
- Growth $19M to $50M
- Total additional capital expenditures of $50M expected
Seems odd that both the cash and sustaining cost have remained constant?
First quarter 2022 averages for by product credits
- Ag $24.03 or a $1.03 more per ounce
- Cu $ 4.53 or a $1.23 more per pound
- Zn $1.70 or a $0.55 more per pound
Over a year just changing the average price of by products
- Ag 946K x $1.03= $ 0.974M
- Cu 11K x $1.23 x 2,205= $29.834M
- Zn 51K x $0.55 x 2,205= $61.850M
Total additional by product credits in year is $92.658M or $23.165M for the quarter...
So I would say that:
- Cash cost for gold should be adjusted down to ((160K x $361)-92.7M)/160K= $(218) per ounce
- Sustaining costs are in the ball park if the capital spend is a quarter of the total targeted
Ultimately the final number for gold production means nothing to this quarters financial statements because we need metal to market in order to generate a bottom line.