Thistle Mining: Charts & Fundamentals

Holdontight,

I think all the information in the email you received can probably be deduced from the Q3 Financial Report published on the TMG website, esp the cash flow account. But I'm not sure it takes us very far. The company had a cash outflow of around $4.4 mn (or around $90/oz) in Q3 which it financed by additional borrowing of $5 mn. The email I received stated that excluding one-off redundancy costs, the reduction in staffing would save around $50/oz initially (but with higher wage rates reducing that saving somewhat). But that could have been guessed anyway by the figures available. If the gold price in Q4 averages around $470, that is an improvement relative to Q3 of $30/oz. Production in Q4 should be around the same level as in Q3 (it helps that the company had small stocks of gold that had not been sold in Q3 and were not counted as sales). Anyway, the net improvement in cash flow should therefore be around $80/oz at an average gold price of $470, taking it to around break even on cash flow. There are lots of special factors in the Q3 accounts (provisions and exchange rate losses) but these should balance the redundancy costs in Q4. My conclusion is that at a gold price of above $470 the company can start to repay its debt.