Post by
iRobot on Aug 10, 2016 4:24am
Operating cost
The latest report informed about a operating cash cost of 1253USD per ounce.
That is a very high cost and should be reduced to a cost around 800USD per ounce.
It's of high importance that this is planned by the management and it should be reported focus a.s.a.p.
Has anyone seen any plan for reducing cash costs?
Further dillution is not an option for AUE and even if there is 30M USD pumped in to the company.
The market value is way up there with current low production and low earnings.
I'm sure that there will be futher reductions on the market value and that means a share price less than 5cent until the report states an increased earnings giving a P/E ratio of 10-20.
AUE should be treated as a very risky stock with a long term reward if management can up the production at reduced costs.
Comment by
TheGrifter on Aug 11, 2016 1:43am
Operating cost is in conjunction with what was mined , that number is somewhat misleading. You reduce that number by getting full production, ie; reducing downtime.
Comment by
iRobot on Aug 11, 2016 10:12am
Yes that's true and I know how it works! The question was if management has informed about production and cost reduction.plans? There are companies that produces gold on the same amount as AUE with a cash cost less than 1000USD per ounce. The question is why can't AUE?
Comment by
TheGrifter on Aug 11, 2016 10:30am
The cost of producing is in correlation with several variables, the biggest one being the down time of New Liberty, the less you produce the more it cost to produce and vice versa, the more oz's you produce, the less it cost. Being in Liberia does add to the cost of production but that will be outweighed by full production hopefully happening within the next month or two.