twin hills production cost, page-3

Charlie,

IMO the calculation of cash costs is great as a purely academic exercise given the economics of the project would have been based on a 2 to 2.5 million oz/year base case. Obviously from past ASX releases it is clear that MMN are currently producing nowhere near those figures.

Post the Twin Hill upgrades, full attention to costs is required once MMN achieve the MINIMUM stated target production of 180,000oz/month. If everything is operating to plan then it would not be unreasonable to expect costs to be around forecast levels within a couple of quarters.

Obviously you shouldn't hold the stock if you don't believe the MINIMUM stated target production of 180,000oz/month can be achieved.

The key ASX announcements to keep on eye on are:
1. Merrill Crowe unit constructed, commissioned and operating - March (possibly April?)
2. Initial resource estimate for Tally Ho - March (possibly early to mid April?)
3. New leach pads completed. Loading and irrigating commenced - March/April?
4. Crushing/screening circuit upgrade completed - May


There are obviously a number of critics of MMN management on this message board, and probably rightly so if the truth is told. However, there is no point holding the stock if you don't have a positive answer to Q.3 below.

Q.1. Could MMN have executed the Twin Hills project better? YES!

Q.2. Are they taking the necessary steps to rectify the key failings? It looks like it.

Q.3. Will they be successful?

DYOR.