Post by
Farquar on Jan 12, 2024 9:30am
Guidance for gold production in 2024 = 170k-195k ounces
There are not too many junior gold producers that have this very progressive growth vector going on for investors. In 2023 KRR will have probably hit their high mark of 2023 guidance at 160,000 ounces produced..
But in 2024 they should easily hit the 195,000 ounce guidance if not more..
Let's say they hit 200,000 ounces....
200,000 X average gold price of 2100$ = $ 420 million US in gross gold sales or 560 million $ canadian!
If gold price average is 2400$ , you get 200k X 2400$ = 480 million $US or $641 million canadian.
If the AISC is say 1150$ , you get 2400-1150= 1250$US gross profit per ounce X 200k = $250 million US or $334 million canadian of gross profit..
A junior with already 100 million $ in the bank , entering a year where it could make an additional gross profit of 334 million dollars and then thus really increase their cash reserves is a pretty good place to be for an investor.. There are thousands of junior gold companies that have nothing going for them but a dream of finding economic gold...
Like I've said , 2024 will be a good year for KRR..
Remember, that the new mill, the new ramp and all the new trucks and equipment which all cost probably 150 million - 175 million dollars of Capex is all paid for and all that spending is in the past... So, should be a significant drop in Capex in 2024, which will only vastly improve cash flow and profitability...