The following represents a quick overview on the lastest NEWS that are available on producing assets that yield revenue to PREMIER ROYALTY. We have copied most information from the latest fillings from the oprators of the mines. An overview of what have been the latest developments at it`s Exploration or Development Stage Royalty Assets will follow soon.
Premier Royalty (T.BPV) remains significantly undervalued compared to it`s peers. Sandstorm Gold (V.SSL) for example in comparison to PREMIER ROYALTY:
Attributable production in relation to basic marketcap:
1200million/50.000 ounces attr. prod. = 0,024
95 million / 6000 ounces attr. prod = 0,015
2014e cash flow multiple analyses
1200million/70million Cash-flow = 17,14 -> 2013/2014 cash flow multiple @ 1750$/oz
95milllion / 11million Cash flow 8,63 -> 2013/2014 cash flow multiple @ 1750 Gold
and here read about the latest on the underlying assets of Premier Royalty:
Construction is complete and commercial production was achieved on August 30, 2012. Gold Production is expected to be 80.000 90.000 per year at costs applicable to sales of $500 to $600 per ounce for the first five years…
http://www.newmont.com/our-investors/financial-reporting (see q3 2012 report page 45)
Buffelsfontein Gold Mine
Gold production at Buffelsfontein of 9,425oz, rose by 2% (or 198oz). The focus in the next quarter will be on improving mining flexibility and ensuring optimal blending which should translate into better grades.
cash costs down, production up (approx 3%)
Gualcamayo Gold mine
Gualcamayo produced 38,248 ounces of gold in the third quarter, representing a 2% increase, compared with 37,381 ounces produced in the third quarter of 2011. Higher production was mainly due to higher recoveries, in spite of lower feed grade. The grade for the third quarter was consistent with plan. Increased tonnage of ore mined reflects Gualcamayo’s continuous effort in stacking materials in preparation of transitioning to Phase III of the mine as part of the planned expansion. Recovery rate improved over the second quarter and the comparative quarter in 2011 as a result of the production from the new Valle Norte heap leach pad.
Cash costs were $669 per ounce in the quarter ended September 30, 2012 compared with $442 per ounce in the third quarter of 2011. Inflationary pressures on labour and consumable costs, lower grade and re-handling of waste costs along with increased maintenance to improve availability of equipment resulted in higher cash costs. Gualcamayo is an open pit operation along a mountain face and from time to time waste is removed and stored and then must be moved again once that ore has been accessed. This movement, or re-handling, of waste will cause costs to increase from time to time. This re-handling is also expected to have an impact on fourth quarter cost levels. The Company is evaluating how to reduce the re-handling of waste and has initiated a maintenance program in an effort to better contain costs. This is in addition to increased production through existing facilities, mainly from QDD Lower West, should reduce costs on a per ounce basis.
Underground development of QDD Lower West continues to advance and project completion remains on schedule. Full ramp-up of Gualcamayo’s expansions to be completed by mid-2013 are expected to increase sustainable production to over 200,000 gold ounces per year beginning in 2014.
A scoping study on the evaluation of milling higher grade ore at Gualcamayo, subject to mineral resource increases in 2012 and 2013, has commenced and is expected to be completed in the first half of 2013.
Mine Waste Solution Project
Mine Waste Solutions (“MWS”) generated US$26.7 million (Q1 2012: US$26.6 million; Q4 2012: US$33.9 million) in proceeds from 20,295 ounces of gold sold (Q1 2012: 21,546 ounces; Q4 2012: 24,862 ounces) at a Cash Cost** (refer to note at end) of US$847 per ounce (Q1 2012: US$663 per ounce; Q4 2012: US$790 per ounce). Page 4
Even though MWS’s tonnage throughput for Q1 2013 was 7% lower compared to Q1 2012 with a resultant 6% drop in gold ounces sold, gold revenues improved slightly (1%) quarter-on-quarter due to on-average higher gold selling prices.
Since Q3 2012, MWS has experienced some challenges with the introduction of new material into the mining mix which resulted in lower average grade delivered to its gold circuits. Towards the end of Q4 2012, MWS’s performance was further impacted negatively by recalcitrant clay levels at the Buffelsfontein No.3 tailings dam that reduced volumes and hence content of feed material delivered to and extracted by the plant infrastructure. Consequently, the tonnage throughput (9%) and gold recoveries (13%) for Q1 2013 were lower compared to that of Q4 2012, resulting in a reduction of 18% in gold ounces sold. The lower ounces sold combined with on-average gold selling prices in Q1 2013 compared to Q4 2012 resulted in the 21% decrease in gold revenues from MWS.
The 20% increase in costs in Q1 2013 compared to Q1 2012 was due to a number of factors, including additional power costs of operating the new TSF, additional water costs and substantial increases to the cost of certain key reagents. The 13% increase in costs compared to Q4 2012 was driven by labour increases which was effective from the start of the quarter along with higher power costs due to tariff increases and winter rates taking effect during Q1 2013.
Due to the Corporation’s decision to dispose of its principal assets at the start of Q4 2012, no amortization for the MWS assets was provided for on a consolidated basis since the start of the 2012 calendar year.
The 7% higher gross profit in Q1 2013 compared to Q1 2012 was primarily attributable to the fact that no amortization was provided for in Q1 2013. The 33% lower gross profit compared to Q4 2012 was attributable to the lower revenues along with higher costs in Q1 2013 as discussed above.
Thunder Creek Deposit of the Timmins West Mine
We advanced lower-grade areas of the Timmins West Mine, mainly at Thunder Creek, as a result of taking additional time to increase the drill density in certain high-grade areas of the UM Complexat the Timmins Deposit. These are important areas and we are doing the work required to maximize production and minimize dilution when these blocks are mined. Looking ahead, we continue to make good progress with our drilling and development programs at Timmins West Mine and our mill expansion, which will position us to achieve our 2012 production guidance as well as strong production growth in 2013.”
Legal Notice / Disclaimer
This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Martin Hoff has based this document on information obtained from sources he believes to be reliable but which has not been independently verified; Martin Hoff makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Martin Hoff only and are subject to change without notice. Martin Hoff assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Martin Hoff, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.