Estimated Free Cash Flows Free cash flows means that portion of cash flows from operations remaining after ALL costs are paid...ie money added to the cash position and book value.
In Q1 , that number was $957 US per ounce which is near identical to that forecast in the FS.
Rounding to $1000 US per ounce @$2000 POG, we are free cash flowing $1000 US per ounce equivalent to about $1300 per ounce in CAD.
So, with 15000 ounces either sold or in the process of being sold but yet to appear
in our quarterly report, we have close to $20 million in free cash flow coming our way from early FP production still working its way through the difficulties of after birth of commissioning .
That quite remarkable .
Such retro cash flow statistics puts us on track for about $50 million per year in free cash flow.......above the current market cap and at just 7.5 times, a conservative fair value of better than $1 per share.
Our rally was interrupted by sell walls set up for option pricing .
On the very positive side, those options were at 13.5 cents .
Very positive, as they could easily have been set earlier at lower prices.
Very positive, as those options were remunerative awards for services performed.
Remuneration can only occurr at prices above $13.5 cents cad .
Its not unusual to fix option prices just before management expects sustained good news to move the share price much higher .
I refer to the discussions on options for monetizing our valuable Murchison assets which currently contribute no value to our share price.
Taken together with rapidly growing cash flows to fund our portion of development costs, we are very well positioned to break through the blue sky pivot point of $0.20...