building up steam?, page-10

Miningnut,

i do not agree.
Let`s ASSume 600 congolesian workers at Diki get pay 3 US/day
amounts to 164000 per quarter. This is peanuts.

Operational results (so far) have been sucking big time IMO coz of a significant
shortcoming in minning and processing volumes for what managment and not the
workers IMO have been responsible for. Additionally Anvil has been facing
industry wide costs increases for fuel etc and higher TCR charges as well.
That bad original RMB financing deal (6,25 %!!! net smelter royalty) also
means higher costs due to (luckily) higher copper prices.
Management also decided to change mining plan, meaning higher stripping ratios
(longer life for open pit but also higher costs). The from my understanding
idiotic but common industry pratice of "unit cost accounting" also means
that unit costs greatley depend on output/reserves. Unit costs should come down significantly once average grades of 7 or even > 9% will be mined in future years with higher processing rates...

I do expect a small operating profit out of Diki this quarter thx to strong
copper/silver prices (and with no adverse changes in inventory and
working capital like last quarter).

I noticed employee options have been priced according the recent ridiculous
low share price levels, i do hope management starts to "earn and deserve" them
and improves their public reporting of their acitvities
(in terms of content).


cheers