The 2021 Scoping Study used a gold price of A$2,450/oz, outlining a production target of 310koz over 8.5 years with an AISC of A$1,388/oz, which equates to an operating margin of A$1,062/oz (~A$329M total operating margin before capex, sustaining capital, royalties, tax, financing, etc.).
Using the recent AUD gold price of ~A$6,900/oz, and even assuming a doubled AISC of A$2,776/oz to reflect inflation and higher input costs, the margin increases to roughly A$4,124/oz (~A$1.278B total operating margin on the same 310koz figure before capex, sustaining capital, financing, royalties, tax, or discounting).
That’s a difference of almost A$1 billion in operating margin between the 2021 gold-price assumption and current conditions.
The leverage on the gold price is extreme - will have to hold this for a few months at least and see where it goes.
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