King River Resources Ltd T.KRR.W

Q4 average gold price = 1731.17 $US

[Farquar]

So, october /22 average gold price was 1666.41 + November ave gold price was 1729.33 + December average gold price was 1797.76 for an overall Q4/2022 average gold price of 1731.17$ US

Krr created 12.6 million$cdn of extra cash reserves with an average gold price of only 1731.17$...That is outstanding..The gold price is almost 200$ more expensive now at 1920$. What kind of cash will krr produce in Q1/2023 with an average gold price of 2000$ ?

If they have a similar AISC as Q4/2022 in Q1/2023 but produce 40,000 ounces, with all things being relatively equal , we could see krr generate not 12.6 million $ of new cash reserves based on the sale of 39,849 ounces but $14.412 million cdn + 12.6 million = 27 million$ cdn in new cash added to their bank account based on the sale of 40,000 ounces of gold per quarter.

So if they made 27 million $ cdn every quarter in 2023 x 4 quarters = 108,000,000.00 $cdn added to their december 31/2022 cash balance of 69 million$ cdn = 177,000,000.00 $cdn in the bank by year end + add 40 million$ from the sale of Dumont they would then have 217 million $ in their bank account by year end 2023....

They are now finished paying off that Morgan Stanley royalty buy out, the last payment was in November /22 of about 1.7 million $ cdn, so Q4 would have created 14.3 million $  of new cash if not for that 1.7 mil payment....So add 1.7 mil x 4 quarters  and now you have an additional 6.8 million added to 2023 year end cash of 217 million + 6.8 million = 223.8 million $ cash balance for dec 31/2023.....

All this is hypothetical as the actual quarter production numbers will be different than these ball-park estimates...but you get the point...Krr cash reserves should go up dramatically in 2023...

This potential cash balance of 223.8 million $ speaks to my previous point about that new Lakewood mill paying for itself by year end 2023...