RE:RE:Q2 Financials Regarding the costs, John mentionned in one of the interviews a few weeks ago (maybe months),that the 1st cost center was the wages/salaries. Then that 30% of the charges were related to fuel directly or indirectly. They used 1.65 per liter in their budget, was 1.20 one year ago, currently 1.50-1.70 I would say.
So this could be one of the reason.
the cost of the debt increased as well as interests went up. I haven't compared numbers yet, Just thinking loud.
Regarding the production, I note that :
"As at June 30, 2023, the Company has gold forward contracts for a total of 49,500 ounces of gold at a weighted average price of US$1,972 per ounce with expiry dates ranging from January 2023 through to September 2024."
So if we consider a production of 180'000 oz in 14 months (July 23 to Sept 23), a little less than 30% of the production is hedged at 1972 USD.
This could prove to be a smart heding in the short term with POG still under pressure due to the FED policiy staying more hawkish than expected until end year.
My two cents macro analysis would be : better POG prices as soon as FED pivot is reached, as USD should be weaker.
POG rally as soon as interests go down. Especially in case of weak growth or mild recession.
Guidance:
Fire issue having a 5-10% impact on production. Obviously a negative event which mean as well higher AISC. Unlucky and part of the operational risk.
But if this issue is left in the rear mirror, current pps looks attractive for either a short term trade than a 12 months investment.
Bought at 8 just before reading about the second evacuation. Bad timing but let's see how this FS and forward projection will move the price today.