RE:Euro Sun Announces Robust Definitive Feasibility Study As a result of the higher gold and copper prices, DFS reported improved profitability. I would like to emphasize two points in particular:
1. AISC AuEq
The AISC are now AuEq designated. Therefore slightly higher than in the PEA. But the $ 790 now applies to 146,000oz AuEq. And no longer the unspeakable net of copper credit.
2. Taxes Romania
The taxes are around 20%. That is deeper than in Canada.
But it is also a fact:
In order to be able to make effective progress, Euro Sun Mining needs the construction permit. Public hearings are mandatory for the approval process.
Nothing will work until Covid-19 is under control in Romania. The development of the Rovina project depends crucially on whether Romania succeeds in vaccinating its population against COVID-19 and the mutations as quickly as possible and in achieving herd immunity in the country. It is very helpful that Romania is a member of the EU. I therefore assume that the approval process could be brought forward decisively this year.
Cash consumption and bonus:
It will now be interesting to see how the cash consumption of Euro Sun Mining will be. As of 9/30/2020, ESM had almost 11m USD cash. ESM needs plus / minus 3.5m USD cash per quarter.
Not included is the "generous" bonus of 250,000 USD, which the directors grant each other. According to MD&A ex SEDAR: The Company has committed to pay a director a bonus of $ 250,000 on completion of the feasibility study.
ESM currently has 7 directors: total 1.75m USD. Basically, it is OK if those responsible are "rewarded" for milestones achieved. But the DFS was created by outside companies. The construction permit would be a real milestone.
It is now interesting to see whether the new chairman of ESM, Peter Vukanovich, has recognized the signs of the times and only pays out the bonus when the construction permit is in place. However, I doubt this will happen, but I would like to be instructed and then I would buy ESM (again) ...
urai58