RE:RE:RE:RE:RE:RE:RE:RE:RE:Couple of questions.100 mil usd fcf for the all year measn 86 mil for h2 or 43 mil usd each q from now .
I bet this impossible .
1) Operationals : there is no new mine . Just a possible better revenue from marmato one ( + 3/ 5 koz ) .the expansion is not complete . Needs a year .
( nothing to do with marmato 2 for 2023 )
2) corporate income tax . 31 % in colombia .
Gcm has probably the hihgest N E T margin in the whole colombia right now ( narcos excepted -) )
Round 50%
If (big if ) am correct , income tax is payable every q on a supposed revevue and an ajusted one once the yearly known . ( payable in q2 . )
It is probably difficult for serafino and his staff to predict at what level gold price will be each q . So there is always a lag there in a rising gold enviromnent .
31% means with an ebitda @ 50 mil , 15mil + each q for taxes.
So i don't know how doing 43 fcf with so heavy duty .
Taxation represents now half the sum of cash costs .
On that matter div are taxed 38 % .
I repeat , i can be wrong . That's not the bible
Plus : Covid is always there . It has a cost . So aisc will be better than q2 but higher than q1 .
There is tons of adjusments to do as we are only spectators .
Segovia is a tremendous cash cow . But to not be squezzed by the taxes , serafino has to adapt the company . More or Better g&a ( higher salary than stock op ) , better working capital etc..
From a shareholder pt of view .
The best thing to do remains investing in its own company if there is now better alternative . So intelljgent buyback on a constant basis .
We have to keep in mind segovia will feed every expansion of the galaxy .
Ps : Calibre gold has released its q3 . Tremendous . With 20% less prod , has a
1.5 gcm market cap.
So , if all companies are better valued , the problem is inside gcm.
Glty