$CDN Gold Price Spike

The $CDN gold price spike benefitted the company greatly, as it provided the impetus to further develop the project, and advance without having to finance. It also gave the company leisure to pay down their debt to Sprott early.

If you look through the notes of the MD&A from the last quarter, you will see that the exploration budget for Komis was ~$8m. This is not an exploration budget, but a development budget.

You can see how company finances work here, that they are obliged to pay for budgets in advance to the subcontractor, which must all be covered by within the previous quarter.

We are at the end of the fiscal year, and similarily to last year when commercial production began, we are going to have another price spike. The expected average realized price should be 17% higher over the next fiscal year.

The expected revenue for the end of fiscal year is about ~$74m.

supersize: http://www.flickr.com/photos/11747277@N07/7145008087/sizes/l/in/photostream/

stockcharts.com

-F6