Commumication to holders has been and remains very poor but the last 6 and next 6 months are a transitionary period. This was not well advertised to holders the impact of this transition. The last quarterly they stated;
"All the necessary permits required to mine east of Floater Road were received during the first week of October and mining has now commenced in this area. The ore to be mined from east of Floater Road is expected to be higher grade fresh ore that will improve recoveries."
Recoveries were still poor.
They changed costs of production a while ago to show margin per t.
A bit of a red flag, making it harder to figure out not only what price they are getting per t but also what is the actual costs per t of production. I dont know any other company who does this?
There was talk about reduced utilisation rates in the conference call yet GXY dont state them in the quarterly figure breakdown, so there is nothing to compare how much downtime is happening from Q TO Q, why not?
YOP was said to:
These productivity improvement projects have been implemented with the objective to increase recoveries to a range of 70-75%, which will lift annual production volumes to between 220,000 and 240,000 dmtpa. Construction and commissioning of these improvements to the process plant are scheduled to be completed during Q3, with resulting improvements in production rates expected in Q4 2018.
2019 guidance of 180-210kt is about 15% off what was said but given it is only coming into play now instead of in Q4 18, it lines up, sort of. I was out at $2.18, sit it out for this Q I think until more clarity regarding strip this Q, new price per t achieved (margin) and whether ore grade will pick up
GXY Price at posting:
$2.13 Sentiment: Hold Disclosure: Not Held
