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Newcastle Minerals Ltd A.NCM


Primary Symbol: V.NCM



TSXV:NCM - Post by User

Bullboard Posts
Post by stopedouton Aug 07, 2018 10:25am
258 Views
Post# 28420761

q2

q2I will take a stab at q2 with a basic 'back of the napkin' estimate.
We know that production was 111,340 oz from 236,990 tonnes. So 35,651 oz more than q1 but 24,453 tonnes less mined.
Q1 cash flow after tax and interest was US$10.9 million.
Add 35,651 oz x US$1250 = US$44.5 million
Q2 cash flow = US$55 million = US$1.22/sh annualized.
Assume higher costs due to grade control progam which started in early Feb are a wash against the lower costs from less tonnes mined.
Combine the strong cash flow with some promotion from Joe on the Friday conference call and I think you get a pop in the stock. I am long Aug US$7 and $8 calls.
I am not long the stock because long-term I am bearish, believing that they are high grading the deposit with the grade control program.
Bullboard Posts