Profits and Cash Flow Orvana's 2010 EVBC feasability study used $800/ounce gold and estimated cash costs of $461/ounce. They expected to produce 100,000/annum. Based on these numbers cash flow from operations was going to be about $29.5 million/annum. The stock was heading to $3.90
With gold at $1700 (and 10-18% hedged at $1350), production at 76000 ounces in 2013 and costs at $750/ounce, cash flow from operations will be about $60 million. Double what their feasability study was projecting. And the stock is at $0.89
Who can understand the markets.
Orvana has plenty of money from operations at EVBC and the UMZ now to repair their balance sheet and move forward. Whether they produce 55k or 100k at EVBC the difference is profitable or very profitable.