I think the new mine plan is a good one. Realistic and deliverable
It will deliver strong cash flows with lower costs. It looks like the AISC will be down to A$1100-1200 which should be quite profitable
Strip ratio's for this half looking much better (5;1) and they are building up the HG stockpiles. It looks like by the time the current pits are depleted they will have at least 20,000 Oz of contained metal in their HG stockpile that will get them thru whilst they access new pits
Strip ratio over next 3.5 yrs to average 7 also a significant improvement
Grade control gives a high level of confidence that the pits will deliver as forecast
They have the mill humming now with grade up and costs down
BLK states they will be able to maintain a minimum cash balance of $15m whilst making significant debt repayments and continuing exploration and reserve definition work.
Orion to be fully repaid leaving MACA debt of $15m to be serviced in 2019
This has been a near death experience but they appear to have turned the corner operationally
BLK Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
