bitter or sweet, page-4

well i understand.

If you focus on the falling grade thru the mill,and consequently the increasing cost structure over the last 3 months,the shares in a dead duck,but your missing the obvious point.

If you concentrate on the grades dug,you see a 3.8g/ton grade on average and a rising production rate,currently around 45k+ tons plus per month average from two sources.In APRIL it'll be three,May four.
The mounts percentage will grow and that's at 8g/ton
In SEPT qtr they spent just under $5m on plant and development versus less than half that in the prior 9 months.

All signs of gearing up to get that 100k/ton per month,however that takes time.

At the moment that means around half of what the mill can process will be mined this year,the rest will be trash ex the site at aroun.9g/ton,until that percentage rises.(see prior post re $6m profit for nix)

So given their plans of 20k ton/month ex the mount at say 6g/ton
Tindalls already at 50k ton/month at 3.8g/ton as per presentations
and the rest from open pits at around 2.2g/ton plus,you can work out the expected increase in grade,if not now fairly soon.
Assume any increase in pit production doubling,or trebbling gold rather the trash input feed.If you play with a little maths,you can see the companys plans.Heaven help us if we get a rich seam ANYWHERE,we have the plant to process that like there's no tomorrow.

100k oz at (35g/oz allowing 90% recovery)
=3.5m grams required divided by 1.2m ton = 2.9g/ton
133k oz add an extra third i.e.4g/ton
the actual yields would be so much higher than my rough figures e.g. they get 95% yield.there are less grams per ounce,but i like putting in a big margin.
Forget the Mount,Forget the potential,just look at what they already know is there and that's 2 million ounces

15+ years production (22m tons) thru the mill without the mount,or any new aquisitions that are nearby(there are just as many floating around within 15-20k of the mill).

2m ounces at $1300 is $2.6B cashflow.