SP Angel broker note today:
"Total cash costs were $805/oz last year and should come down. $10-$15m of operating and central admin costs were identified when the company updated the market of their business plan.
US$150m of capex had been deferred by year by extending the development of the POX plant.
However, against the tide of sentiment hitting high cost gold producers and a weak gold price investors may not give the company the benefit of the doubt at this stage. Concerns remain that despite moves to protect the balance sheet that the company may still breach its covenants. With potential for write offs the asset side, the balance sheet remains vulnerable. This has now become a recovery stock where the focus will be on absolute cash flow generation to meet interest payments and pay down debt."