Post by
Farquar on Mar 06, 2022 4:38pm
Record gold price for a Quarter one ..ever..
January /22 avg gold price = 1816$US......February/22 avg gold price= $1860 US....March/22 avg gold price so far = $1944 US.................$1846 US is already a record for any January - March period in the history of the US dollar reserve currency system but if the gold price stays above 1900$ for the rest of March , we obviously will have an even bigger record Q1 gold price....Q1 /2020 gold price = $1584 US.......Q1/2021 gold price = $1798 US...Two years ago in Q1 alot of Krr's production was still hedged at $1350 US , they sold their last 7000 ounces of gold at 1350$ ( The overall production was about 25,000 ounces...7000 ounces x 1350$ and 18,000 ounces at 1584$) , I can't remember the exact amount but they lost maybe 234$/ounce or about 15 million$$$ (pure profit) in that quarter due to the 1350$ hedge.( Their average gold price was about 1518$/,ounce)..Anyways, fast forward only 2 years and we are completely unhedged and we are experiencing record quarterly gold prices...Krr is also producing more gold now 30-35k per quarter and at a lower AISC than 2 years ago, they also have much lower royalty payments...They are also experiencing very high nickel prices compared to the last 2 years...So, what I'm trying to say , is that if Krr could accumulate 90 million$ cash in the bank , upgrade the mill from 1.3M to 1.6M , spend 40 million$ on royalty buybacks, spend maybe 35 million$ on exploration, buy out Spargos for 5 million $, buy millions of dollars on new equipment , become a net-zero in terms of carbon emissions etc.etc.etc. from a much lower average gold price than what we are experiencing now, what are they going to accomplish in the next 2 years with a rising gold price, that is providing much higher cash flows and profits than ever before?? KRR is improving every quarter and continues to keep improving...There is good reason to continue believing in Huet- Sloane- Turner etc. as they keep delivering on stated goals ....by mid 2023, which is not far off, they should have hopefully finished the new ramp and the mill upgrades and actually become that 200,000 ounce producer starting July 1st/2023.....If Huet succeeds in fulfilling his production goals on schedule, this stock will be worth alot more by this time next year...There is still major share price appreciation coming in the next 15 months...
Comment by
materialsgirl on Mar 06, 2022 5:26pm
yep. Premarket Gold is $1975 at about 5.30 pm EST I have never seen so many concurrent tailwinds for any company with zero headwinds. Some "foolish" people will sell their shares tomorrow and miss out on the ongoing gains. mat