AUL (ASX) Where is the BoD

Originally posted by vertigo ↑

It is difficult to drill cost effectively to reserve status with these kind of gold deposits. Your continual harping on about this make you look uninformed. MCO drilled a 910,000 Ounces Gold JORC Resource, sure it may not have been 100% accurate but to say that there are not reefs able to be profitably mined in the upper levels will be proven wrong.

The head grade from October works out to be 13g/t from MS, and the average grade from the RoD trial mining was around 5g/t, if the recovery improves from the plant enhancements lifts the grade to 7.5g/t it would be half the head grade of MS. If the plant was fully utilised then the total gold produced would be around 2500oz per quarter, giving $6m in revenue per quarter.

Lets say the production cost doubles to mine both which gives a quarter running cost of $3.6m and a profit of $2.4m per quarter or roughly $10m p/a.

Given the current gold price and a full capacity plant on MS and ROD ore could be making over $10 million profit pa.

At the current MC of $8m is a PE of 0.8

That is not ramping, this is based on actual figures and a couple of small assumptions.

Expand

Just for accuracies sake MCO did not drill a jorc resource. Morrie Goodes mearly calculated the jorc from historic drilling by GMA if memory serves correct.
As for ramping, well where does one start? Maybe upon the Stackpooles 'discovery you predicting them being cash flow positive shortly. AUL being a mid tier producer in a 'very short time'.
In the last few days many posts about profitable mining, A1 being back on the agenda ad nauseum.
So in your world we have a company on life support and desperately trying to raise cash, probably mining profitably but not telling the market. Heaven forbid someone might read it and want to invest!
Seriously you take a contra position for the sake of it and get your jollies by antagonizing others with selective quoting of others words out of context and quibbling about irrelevencies. Constantly trying to deflect from the real issues facing the company and refusing to accept the opinions of some that are far more knowlegable and rational than yourself.
All imo.