RE:RE:What is happening at Fosterville. vestor111 wrote: and 60+ g/t are on there way and with that better recovery.
OK, vestor, you want to assume Fosterville grade will rise to 60 g/t, I can go with that.
Let’s have some fun with figures.. I will use KL’s ‘Going for the Gold’ Fosterville 2018, page 17 for reference.
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For nine months ended September 30, 2018 RECORD PRODUCTION 356.2 kozs
For nine months ended September 30, 2018 UNIT COSTS/OZ1,2 Cash costs: $231 AISC: $498
(I know these figures are a little dated, but let’s use them to be conservative)
Production of approximately 360 kozs or 120 koz/quarter. If grade doubles from 30 g/t to 60 g/t, then production will double to 240 koz/quarter.
AISC of approximately $500, if production doubles, AISC should be ½ or $250
Gold at approximately $1300 - $250 = $1050 Gross Earnings per oz.
Production X Gross Earnings, 240 koz/quarter X $1050 = $252,000,000/quarter
Yearly Gross Earnings $252 Million X 4 = ~ $1 Billion from Fosterville only
Net Earnings $ 1 Billion X 75% = $750 Million (Australian tax rate 30% but assume some write-offs) NOTE: This will be happening later this year.
Insert your own P/E (15 – 25) and add value for Cosmo and the Canadian operations and you will see KL stock is still undervalued by a minimum of 50% to possibly 66 – 75%.
We have a long way to go, people…