1/4
As stated the other day #SRB hit AISC $1,080 at c. 40k oz production in 2019.
This year looking like min. 36,000 oz is on which will raise that AISC slightly.
However, we must not forget the exchange rate.
As stated the other day #SRB hit AISC $1,080 at c. 40k oz production in 2019.
This year looking like min. 36,000 oz is on which will raise that AISC slightly.
However, we must not forget the exchange rate.
https://twitter.com/BigBiteNow/status/1394959429238407172?s=20
2/
In 2019 the Brazil Real averaged R3.95 to a dollar.
YTD in 2021 it is running at R5.47 a dollar.
That's a 38% difference to 2019. The vast majority of SRB costs are in Brazil Real with revenues in dollars.
In 2019 the Brazil Real averaged R3.95 to a dollar.
YTD in 2021 it is running at R5.47 a dollar.
That's a 38% difference to 2019. The vast majority of SRB costs are in Brazil Real with revenues in dollars.
3/
So it's going to have an effect and certainly gives me great confidence that my $1,200 AISC estimate is top end.
Gold price YTD is averaging $1,790 per oz.
So it's going to have an effect and certainly gives me great confidence that my $1,200 AISC estimate is top end.
Gold price YTD is averaging $1,790 per oz.
4/
At 36,000 oz I make that gross profits of c. $21m.
Those same cost savings can be applied to the 30,000m exploration drilling and Coringa, all mainly in Brazil Real.
Next year the target is up to 45,000 oz which means the AISC goes down and profits head much higher.
At 36,000 oz I make that gross profits of c. $21m.
Those same cost savings can be applied to the 30,000m exploration drilling and Coringa, all mainly in Brazil Real.
Next year the target is up to 45,000 oz which means the AISC goes down and profits head much higher.
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