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Sagres Energy Inc V.SGI



TSXV:SGI - Post by User

Post by PulpCutteron Sep 27, 2022 12:07am
211 Views
Post# 34988486

Dependence of AISC on production ounces

Dependence of AISC on production ounces

OK, so here's the AISC vs production, in Aussies. I'm going to assume the US$ 29.31 million AISC/qtr holds, using the simplification to illustrate the main point. At the 0.75 AUD/USD ratio that the Q2 report stated, that's A$39.08 million AISC/qtr.

Note gold has held nicely above A$2500/oz, and is A$2516 at the moment. Because virtually all of SGI's revenues, expenses, and bank accounts, are in Aussies, $A2516 is the relevant gold price. FY2022 revised guidance 69-75k oz, with H1 production 32k oz, yields H2 production guidance of 37k-43k/half, or 18.25k-20.75k/qtr.

A$39.08/18.25k oz = A$2141/oz AISC vs A$2516/oz spot; A$6.8M AISC margin/qtr

A$39.08/20.75k oz = A$1833/oz AISC vs A$2516/oz spot; A$14.2M AISC margin/qtr

A$39.08/25k oz = A$1563/oz AISC vs A$2516/oz spot; A$23.8M AISC margin/qtr

Obviously, quarterly costs are not totally fixed, even for a FIFO operation like Plutonic. This exercise is a first-order estimate. Point is, costs and profits vary A LOT, between 15k and 25k production per quarter.

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