GREY:GPLDF - Post by User
Comment by
cyanide5on Aug 03, 2020 12:32am
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Post# 31356712
RE:RE:RE:RE:Week Ahead
RE:RE:RE:RE:Week Ahead @wolf.
you are spot on. The issue with GPR is its high costs and low mine life. That is exactly the reason of low price. They couldn't make money when gold was 15-1600 at end of Q1 due to egrociously high AISCs. These need to come down to 11-1200 for them to start showing some margin and positive eps. If Q2 financials don't show that then I am not sure what will. In Q1 they pinned it to extra stripping. This should help in remaining quarters. Furthermore they kept yearly cost guidance to same as announced earlier in the year.
let's see if they can deliver. If we get the figures in line with guidance then this should sharply trade higher. It's all about building cash and FCF at these prices. Now is their opportunity.
Otherwise GPR I am afraid won't survive. we will know after Q2