EIJ,
I always appreciate someone who posts data as opposed
to opinion. The following confirms some of what you've posted:
My kntnf spreadsheet shows back 5 years to 2020 and
involves 19 columns of quarters w 10 rows of data.
Yesterday the net margin (income/revenue) hit 38%.
This was the highest ever as the previous highest margin
was 2nd q 2020 when it hit 35%.
There are 3 occasions when the net margin was 29% or higher.
Each time the net margin > 29%, the following was in place:
1.) Revenue exceeds $45 million
2.) Feed grade > 11.0
3.) Most importantly, was the differential between realized GP
and AISC... the 3rd q results show this differential= $1447.
That differential is by far the highest ever
(ie the higher the differential the better). The 2nd highest
margin at 35% (2nd 2020) resulted in a $953 differential
In short, it's not the realized gold price that's important
but rather the differential (RGP minus AISC) that's critical
along w the feed grade..
So if the RGP is under pressure but AISC continues to be driven
lower, we should continue with high net margins.