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pierregon Jun 20, 2019 8:32am
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Post# 29843340
$RNX: In AUS$ Gold terms, we are close an all time high.
$RNX: In AUS$ Gold terms, we are close an all time high.CRUX Investor on Twitter May 24th 2019: « In AUS$ Gold terms, we are close an all time high. Find out what this means for investors. » In-depth Mark Selby interview here https://www.youtube.com/watch?v=6TX6dFA5vb4:
Video link: https://twitter.com/CruxInvestor/status/1131961781419675649
My transcript:
Mark Selby: « It's been a pretty weak year, but in Aussie dollar Gold terms, we're close to all time highs. So, in terms of Gold production… »
Matthew Gordon: «When you say, explain to people what the difference is? »
Mark Selby: «Yeah. So, the Australian / US dollar. So, when US dollar Gold was 1,800 $ USD an ounce, the Aussie dollar was at par to the US dollar. So, for an Aussie miner, the vast bulk of your costs are all in Australian dollars. So, you're seeing 1,800 $ AUD, when US dollar Gold 1,800 $ USD an ounce. Today at 1,270 $ USD an ounce. The Aussie dollar Gold price is over 1,800 $ AUD an ounce. »
Matthew Gordon: «Your benefiting from the exchange rate. »
Mark Selby: «So, in terms of for the Australian miners, things are as good as they've ever been. »
Matthew Gordon: «Right, understood. So, Higginsville. Your strategy was not necessary to buy it now, but it came up now. You've done the deal. So, you recognize that perhaps the timing could have been different? »
Mark Selby: «I'd love to have done it at a higher share price, which I think is going to happen after Dumont Feasibility Studies done, after the Beta Hunt Resource is done and, after we pull up the next load of high-grade Gold. »
Matthew Gordon: «But you don't always get the choice. So, what would happen if you haven't have bought it now? »
Mark Selby: «The risk is we had tolling capacity that was in place. Again, it cost us 15 $ a tonne more than what we have now. Again, as you go into a Resource update and, start to look at what the Reserve looks like, when you can take 15 $ a tonne out of your costs that has a dramatic impact in terms of what you can do with the Resource and the Reserve to generate a much more total free cash flow operation. »
Matthew Gordon: «Okay. So, is anything else that you think you need to say or want to say with regard to giving people comfort that Higginsville was a smart decision? Because I imagine it wasn't a session taken lightly. Casually. So, what would you like to say? »
Mark Selby: «It's a relatively new mill, it's the right size for Beta Hunt. It gives us some growth. We pick up a pretty big land package, in one of the most prolific Gold camps in the world. We get 10 M $ to 15 M $ of NAV immediately. Plus, it'll be mining there for a very long time, from the Higginsville assets. »