Tell me these guys a CGR didn't just say this? ............... .................................
From the CC on 1Q Results:
Unidentified analyst
Yes, Mr. McMillan, I have got two questions. One is the -- can you give an estimate on what your [all in] cost will be this year per ounce and also I don’t think you touched on the share process, so pretty depressed levels you got now. Thank you.
....McMillian drivel on share price expunged
Rick Johnson - Chief Financial Officer
Just on a high level, the Seabee breakeven cost are around -- this is based on forecast production around $1500 an ounce and our other costs about $200 an ounce. So all in total $1700, but with some of the initiatives that Neil has talked about in his presentation, we expect to see something better than that.
Neil McMillan - President and Chief Executive OfficerWe have budgeted to consume cash this year even at substantially higher prices because we have been investing in Santoy and that project and L62. I think it's safe to say firstly, we mitigated much of the gold price reduction with our total -- our total expenditure reduction and the encouraging thing for us is going forward, we see our expenditure staying the same or coming down and our gold production going up steadily and on that basis, we expect our total cost per ounce to come down and our sustaining cost at Seabee to come down as well.
We can weather whole utility and the gold price going forward. We don’t want to see it go to 1200 or 1250, but we stayed in business in this company when the gold price was under $400 an ounce and I am confident that we have the liquidity and we have the flexibility to continue to meet these volatility challenges in the gold price.
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Time to load up the boat on this one! Yeah, that's the ticket! I just LOVE companies who consume cash instead of generating it! Just think, if POG drops to 1300 level or below these guys can escape debt through Chapter 11! How do I get a second mortgage on the house? Gotta buy millions of shares! NOT! Jeez. |
