Ann: AUC Expands Katanning Gold Resource to 1.84 million ounces, page-76

I was in AUC close to 10 years ago, bought at 30c and rode the wave to over $1 and sold so made some good money. Have never taken it off my watchlist though.

Just getting back into reviewing it, sure the 1.86m ounces looks great but the grade is still low (as it always has been at the KGP). 1.24 g/t is low. There are some good grades in there, but the vast majority is low grade and will therefore have a major impact on cost (even with the mining being open cast).

I'm also in SLR, and their 2 mines are Deflector (623k ounces at 5.2 g/t) which has an AISC of A$1400-A$1500 and they have Mount Monger at 736k ounces at 2.1 g/t which has an AISC of A$1750-A$1850 (both costs are estimates for FY22.

AUC could easily be looking at an AISC of over A$2k / ounce which would have an impact on NPV's etc.

I haven't seen any guidance from AUC on AISC (I assume they wouldn't provide this until they've done a PFS and got to FID) but does anyone have any guidance as to what you are expecting AISC coming in at? Seems the biggest issue for AUC, for example a 100k ounce operation might only generate netback of A$300-$400 / ounce or around $30-40m before deductions for corporate overheads and any financing (assume they finance development, though similar discounts would be needed if financed via share issues).