$ 2000 Gold and EDVGoldman just raised thier price target for gold to $ 2050 for 2023.
Imagine the impact of Gold price going up over $ 200/oz (LY the average was $ 1807) with flatish produciton numbers and flatish AISC projected for 2023 !
Does it add $ 280M to the bottom line (+$ 200/oz x 1.4M oz) ? Less addtional taxes of course..as well as some positive effects like: increased interest revenue on Cash, etc.
Adjusted Net Earnings were $ 65M for 2022
In other words, an increase in tle average PoG realized could easily double, triple?, quadruple? the bottom-line. What does that do to CF /sh, EPS? Price targets? Dividend payouts?
Supporting tidbits from annual report Average realized Price
The realised gold price, including the impact of the Group’s revenue protection programme, increased from $1,781 per ounce for FY-2021 to $1,807 per ounce in FY-2022.
Collars - For FY-2023, approximately 300koz (75koz per quarter) are expected to be delivered into a collar with a call price of $2,100/oz and a put price of $1,750/oz. In addition, approximately 120koz (30koz per quarter) are scheduled to be settled in forward sales contracts at an average gold price of $1,828/oz.
- For FY-2024, approximately 450koz are expected to be delivered into a collar with a call price of $2,400/oz and a put price of $1,807/oz. In addition, during H1-2024, a total of approximately 70koz (approximately 35koz per quarter) are expected to be settled in forward sales contracts with an average gold price of $2,033/oz.
2023 Outlook (flatish output in oz, and consistent AISC) As published on 23 January 2023, the production guidance for FY-2023 amounts to 1,325-1,425koz, which marks an increase over the FY-2022 guidance of 1,315-1,400koz, while Group AISC is expected to remain consistent with that achieved over recent quarters at $940-995/oz.