nspolar, it's looks like a home run, but it's risky like a bastard. Just be looking at the chart in relation to the PR tells me the Russian operations are of primary importance. BTW; I used to hold shares in Canadian Fracmaster so Russian business ventures aren't a thing I enjoy - ugh...
Julietta mine, which is just now in production (ahead of schedule) and it operates with a cash cost of $70 per ounce. The average annual production of the mine is 100,000 oz. gold and 1.7 million oz. silver. They do have some hedging associated with this project because of the financing involved:
Total Bema hedging outstanding is 212,000 ounces of spot deferred contracts (all allocated to the Julietta project) at a strike price of $311 to $333.25 maturing from September 2001 to September 2005, this equates to approximately 50% of the first four years of production.
also:
Bema’s total outstanding gold hedges divided by the total proven, probable, measured indicated and inferred gold resources of 9,879,000 ounces, reveals that the Company has only hedged approximately 2.1% of its total reserve/resource base. Therefore, Bema is highly leveraged to any gold price moves.
bema.com
Note the management has been diluting the shareholder base to increase their working capital for more exploration in Russia. -- Like I said, a lot is dependant on this particular venture.
Regards
Frank P. |
