Cash costs are $204 per Analyst Report
eResearch put gold cash costs at $204/oz and silver cash costs at 2.35 in their Dec06 Analyst report on EXMIN.
Forecast 2008 position:
GOLD
Gold cash costs $204 plus 25% (assmued increase plus other costs)= $255/oz. Take an average market price of $850 for 2008 gives us $595 revenue/oz
At production of 25000 oz = $14,875k total revenue for the Moris mine
Exmin 30% share is $4,463
SILVER
Cash cost $ 2.35 plus 25% = $2.94/oz.
Take an average market price of $15/oz gives us revenue of $12/oz.
At production of 60,000 oz = $720,000 total revenue from silver.
EXMIN 30% share = $216,000
OVERALL
I would say EXMIN stand to revieve cash of approx $5m in 2008 (higher than their own forecast). If Gold keeps on rising as predicted we stand to gain even more.
I would however not expect to see a significant profit margin in 2007 as it has only just started in the latter part of 2007.
This is good news for shareholders as it will minimise the need for Exmin to raise finance through share capital and avoid dilution but more importantly to enable EXMIN to advance exploration and move forward with DRILLING.
EXMINS recent release stated " EXMIN is now poised to take advantage of the current high metal prices". This statement in my opinion makes perfect sense.
The above are my own assumptions and given for information purposes only. Please do your own DD to assist with any your investments choices.