RE:RE:Average POG 4Q19 vs 1Q20 (to date)Goldbug52 wrote: vestor111 wrote: Average POG 4Q19 = $1480
Average POG 1Q29 = $1601 So far per kitco data.
With only 15 trading days left in 1Q, miners are pulling down $121 more per ounce in 1Q over 4Q thus far.
So one has to ask, how stupid will this get?
IF KL sell about 375000 oz in 1q (1.5M/4) with $121 more per oz, that is more than $45M extra - almost pure profit...or about $0.15 more share over 4Q.
That all sounds good but you and Chuck didn't take some important facts into consideration, namely: KL now has about 74 million more shares outstanding (after share buy backs to date) or 284 million shares, whereas last qtr they only had about 210 million, also you forget that Victoria State royalty comes into effect in the first qtr (2/3 of their production came out of Fosterville). That 2.75% royalty is going to be a hit to their bottom line! Also that $45 million is subject to approximately 30% tax, so about $31.5 million extra in profit. I think EPS will be between $.70 and $.75 .
No chance we beat last qtr's earnings!
In defense of vester's calcs $45M divided by the current number of shares comes to 15.7c
Also you need to add in earningds from Detour during the quarter.
Otherwise your right it may not be totally to the bottom line because of taxes especially the new Victoria State tax.
Is that 2.75% a tax or a royalty i.e. is it on ounces produced or on profits I don't remember?