Spur Ventures Inc SPVEF

RE:RE:Gold Prices

[jedd2]

Nilyab, you are correct.  Atlantic Gold hedged 215,000 ounces at an average price of a little more than CAD $ 1,600.  That would be a little more than 2 years gold production.  The current gold price is about CAD $ 1,570 so Atlantic will be generating gold sales at prices better than today's gold price for about 2 years.  We should not be affected by a declining gold price in the short term.  2018 AISC per ounce are forecast in the CAD $ 675 to 735 range per the corporate presentation.  Q1 2018 AISC per ounce came in at CAD $ 751 so they will generate gross margin of more than CAD $ 800 per ounce.  That is phenomenal.  The Atlantic stock price decline is very disproportionate to the actual gold price decline but that is typical as investors hit the sell button with little regard for the facts.  Long term gold prices are likely to improve so these margin numbers could get a lot better over the years.  Atlantic warrants expire on Monday (Aug 20) so that is also likely to reduce selling pressure on the share price.  The conference call on Wed (Aug 15) will shed more light on Q2 2018 results.