If you taken the capital cost away(158/oz)there is 52Million left.
Their total expenditures for 1996,97,98 equal approximately 16M, which would qualify for 91.5% cash flow, the financing(23.8M) and interest also. That leaves little room for Kazak partner, about 7M at 331 per oz and 100M gross revenue, about 3M at today's gold price and 89M gross revenue. Adding silver credit for 260K oz they total revenue before other costs, taxes could be about 20M to SPE for 5 years at 331 per oz., at today's prices little over 13M. If the cost was to be 200 per ounce, it seems it would be better if everyone stayed at home.
The deposit size was cut by 60,000 oz. and the Suzlik deposit was not included in calculation. The capital costs of financing, which give a bit optimism here would come down as the commodity prices fell, they could get a bargain on infrastructure more easily and it is what John was hoping for.
The last word is for creditor and so far, as the market tells as, the doubt that we will hear yes seems to be the winning party. |
