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Message: RML said it would transfer its assets to a joint venture controlled by PDVSA

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Re: RML said it would transfer its assets to a joint venture controlled by PDVSA

posted on Sep 30, 11 07:22AM

Sure, Chavez will expect to see some cash from the predicted annual 500K oz of gold production. This does not surprise me. What is most important is that RML can still continue doing what it's always done: take the mines into the next phase. What I am most interested in is whether they can actually keep cash costs/oz under control when full production is achieved. Most scenarios so far were based on an average price of USD 950/oz even though returns have been much higher (but so have cash costs). With a greater than 10M oz resource of gold and a projected 500K oz of annual production, even a $100/oz profit would be good news for the share price at a current market cap of $74M.

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