DMMGold price has averaged $1,328 for 3Q13.
And somehow DMM has avoided private placement thus far. If no news by end of tomorrow, then I expect that either:
1) DMM found some very high grade material during past 46 days since the 10Q and/or
2) Ecuador government extended/gave DMM additional loan
We shall see.
Per below using somewhat optimistic assumptions for 3Q13 (6,499 gold ounces sold), I estimate DMM ALL In cash costs at $1,360/oz which equates to $210,120 negative cash flow for 3Q.
This assumes 2% increase above 2Q13 ALL In cash costs
FWIW, using 6,670 gold ounces sold (instead of 6,499) at $1,328 average gold price, I do have DMM at breakeven cash flow.
Base model at 6,499 gold ounces.
| DMM | Sep 13 Est | Jun-13 | Mar-13 | Dec-12 | Sep-12 | Jun-12 | Mar-12 |
| TPD | 450.0 | 450.0 | 450 tpd | 425 tpd | 400 tpd | 400 tpd | 450 tpd |
| Quarter g/pt | 4.94 | 4.56 | 3.74 | 3.07 | 2.69 | 4.18 | 3.49 |
| Subsequent g/pt | | 4.40 | 5.26 | 4.11 | 4.32 | 5.33 | 4.11 |
| | | | | | | | |
| Gold Ounces Sold | 6,499 | 6,001 | 4,922 | 3,820 | 3,150 | 4,900 | 4,600 |
| Silver Ounces Sold | 17,000 | 10,960 | 16,030 | 6,700 | 11,600 | 8,300 | 7,100 |
| Revenue-Cash Flow | $9,001,129 | $8,716,649 | $8,472,082 | $6,810,981 | $5,547,122 | $8,148,878 | $7,894,197 |
| Revenue-Reported | | $8,716,649 | $8,472,082 | $6,810,981 | $5,500,000 | $8,200,000 | $7,900,000 |
| Gold Eq Oz @ 55:1 | 6,808 | 6,200.3 | 5,213.5 | 3,941.8 | 3,360.9 | 5,050.9 | 4,729.1 |
| Gold Eq Rev Per Oz | $1,328 | $1,406 | $1,625 | $1,728 | $1,650 | $1,613 | $1,669 |
| ALL Cash Costs-Inflation 8% | $9,261,723 | $9,080,121 | $8,744,460 | $7,199,673 | $5,919,483 | $9,726,381 | $11,360,791 |
| ALL Cash Costs-Fixed vs Var | $0 | | | | | | |
| ALL Cash Cost/Oz-Actual | $1,360 | $1,464 | $1,677 | $1,826 | $1,761 | $1,926 | $2,402 |
| ALL Cash Cost/Oz-FixvsVar Est | $0 | | | | | | |
Here is same model at 6,800 ounces produced, this yields positive cash flow of $173K. Does not take much gold ounce production increase to get DMM at positive cash flow (assuming only 2% rise in costs from 2Q13)… | DMM | Sep 13 Est | Jun-13 | Mar-13 | Dec-12 | Sep-12 | Jun-12 | Mar-12 |
| TPD | 450.0 | 450.0 | 450 tpd | 425 tpd | 400 tpd | 400 tpd | 450 tpd |
| Quarter g/pt | 5.16 | 4.56 | 3.74 | 3.07 | 2.69 | 4.18 | 3.49 |
| Subsequent g/pt | | 4.40 | 5.26 | 4.11 | 4.32 | 5.33 | 4.11 |
| | | | | | | | |
| Gold Ounces Sold | 6,800 | 6,001 | 4,922 | 3,820 | 3,150 | 4,900 | 4,600 |
| Silver Ounces Sold | 17,000 | 10,960 | 16,030 | 6,700 | 11,600 | 8,300 | 7,100 |
| Revenue-Cash Flow | $9,401,000 | $8,716,649 | $8,472,082 | $6,810,981 | $5,547,122 | $8,148,878 | $7,894,197 |
| Revenue-Reported | | $8,716,649 | $8,472,082 | $6,810,981 | $5,500,000 | $8,200,000 | $7,900,000 |
| Gold Eq Oz @ 55:1 | 7,109 | 6,200.3 | 5,213.5 | 3,941.8 | 3,360.9 | 5,050.9 | 4,729.1 |
| Gold Eq Rev Per Oz | $1,328 | $1,406 | $1,625 | $1,728 | $1,650 | $1,613 | $1,669 |
| ALL Cash Costs-Inflation 8% | $9,261,723 | $9,080,121 | $8,744,460 | $7,199,673 | $5,919,483 | $9,726,381 | $11,360,791 |
| ALL Cash Costs-Fixed vs Var | $0 | | | | | | |
| ALL Cash Cost/Oz-Actual | $1,303 | $1,464 | $1,677 | $1,826 | $1,761 | $1,926 | $2,402 |